To Lianf Zhaoxian, CEO of Galanz Enterprises Group Co. Ltd.
This report evaluates past and present perfomance of Galanz with its strategies and gives insights as to what decisions should be made to make the company more successful in future.
Since 1991 Galanz has evolved and become a dominant player in the global manufacturing market for microvawe ovens. The company has understood its strategic strength and used its resources as its strategy. Galanz has used its cheap land and cheap labour to get to where it is now, its dominant position in China and Globally. The technology has played a crucial role in company development too. Four years after its incorporation Galanz has established Research Institute of Household Electrical Appliances in China and two years later Galanz American Research Center in the US. Technolgy has payed off quickly, Galanz has developed its own magnetron in 2000 and added many new features in its products becoming more high tech in its industry and winning additional market share.
Not only Galanz identified the technology as a key factor the company also developed operations strategies that made it so successful domestically and globally. Through its operations strategy the company was able to cut its production costs to the minimum therefore attracting OEM orders and eliminating competition domestically. In 2000 Galanz domestic market share have become 76% and international market share 40% in 2002.
Galanz was making huge progress in manufacturing as a OEM and ODM, however when company went into overseas market as a OBM the conflict started to arise with its OEM and ODM orders. Galanz has a great price strategy and very skilled manufacturing production therefore the company should use this advantage to launch a whole new product overseas instead of competing in the OBM and conflicting with its OEM orders and customers.
1. What were the order winners/ order qualifiers for Galanz in the microwave oven