case
w
rP os t
S
910D05
OPERATIONS STRATEGY AT GALANZ
op yo Dr. Stephen Ng and Barbara Li wrote this case under the supervision of Professors Xiande Zhao, Xuejun Xu and Yang Lei solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca.
Copyright © 2010, Richard Ivey School of Business Foundation
BACKGROUND
Version: (A) 2010-08-05
tC
On January 4, 2004, Liang Zhaoxian, the vice-chairman and chief executive officer (CEO) of Galanz
Enterprises Group Co. Ltd. (Galanz), had just returned to his office after signing a contract to outsource part of the production of Galanz’s designed and branded magnetrons1 to a Japanese manufacturer. Galanz had previously relied on the magnetrons designed and branded by its suppliers during its earlier years of development as a microwave oven manufacturer for many foreign brands.
No
In the past, Galanz had purchased all its magnetrons (a core component of the microwave oven) from foreign suppliers such as Toshiba and Panasonic. But the rapid growth of Galanz’s microwave oven business had threatened these magnetron suppliers, who were also in the microwave oven market. In an effort to restrain their competition, these suppliers decided to reduce the magnetron supply to Galanz. This
rP os t
S
910D05
OPERATIONS STRATEGY AT GALANZ
op yo Dr. Stephen Ng and Barbara Li wrote this case under the supervision of Professors Xiande Zhao, Xuejun Xu and Yang Lei solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca.
Copyright © 2010, Richard Ivey School of Business Foundation
BACKGROUND
Version: (A) 2010-08-05
tC
On January 4, 2004, Liang Zhaoxian, the vice-chairman and chief executive officer (CEO) of Galanz
Enterprises Group Co. Ltd. (Galanz), had just returned to his office after signing a contract to outsource part of the production of Galanz’s designed and branded magnetrons1 to a Japanese manufacturer. Galanz had previously relied on the magnetrons designed and branded by its suppliers during its earlier years of development as a microwave oven manufacturer for many foreign brands.
No
In the past, Galanz had purchased all its magnetrons (a core component of the microwave oven) from foreign suppliers such as Toshiba and Panasonic. But the rapid growth of Galanz’s microwave oven business had threatened these magnetron suppliers, who were also in the microwave oven market. In an effort to restrain their competition, these suppliers decided to reduce the magnetron supply to Galanz. This