Galanz Case. Operations Management Analysis
Assessment 1 galanz paper: Operations management
September 19, 2011
TABLE OF CONTENT
ORDER QUALIFYING FACTORS 4
ORDER WINNING FACTORS 4
PRIORITISED VOB & VOC OF GALANZ: 5
THE ROLE OF TECHNOLOGY 6
COMPETITIVE AND OPERATION STRATEGIES 6
DIFFERENCES BETWEEN OEM/ODM AND OBM 7
GALANZ’S STRATEGY OF INTRODUCING OBM IN INTERNATIONAL MARKET 8
SUGGESTIONS FOR MR. LIANG TO LEAD THE COMPANY TO GREAT SUCCESS 9
ORDER QUALIFYING FACTORS
✓ Familiarity with Chinese market
In 1991, Liang Senior analysed the Chinese consumer market for a year and sensed that the rapid growth of the Chinese economy will encourage the demand and purchasing power for a wider range of modern products where the competitors could not see the market potential yet.
✓ Less risky to invest in the technology side
The microwave oven was invented by Americans in 1950s, so that Galanz could take the advantage of having less risky to invest in the microwave oven market due to its stable and mature technology.
ORDER WINNING FACTORS
✓ Abundant supply of cheap land and labour (low-price strategy) enabled:
• Increase its production capacity
Galanz optimised its labour resources and production facilities by operating the factory fully 24/7 and 365 days a year.
• Highest volume of the sales in both the domestic and global markets
The company achieved the leading position by cutting prices by 30 – 40% and the lowest price was less than RMB 300 when the range of offered prices were from RMB 1,000 to RMB 3,000 from its competitors.
• Free production line in OEM achieved by a low cost of production
Galanz could expand its production scale and raise the product quality quickly by achieving OEM agreement with Fillony where Galanz gained a free production line as
September 19, 2011
TABLE OF CONTENT
ORDER QUALIFYING FACTORS 4
ORDER WINNING FACTORS 4
PRIORITISED VOB & VOC OF GALANZ: 5
THE ROLE OF TECHNOLOGY 6
COMPETITIVE AND OPERATION STRATEGIES 6
DIFFERENCES BETWEEN OEM/ODM AND OBM 7
GALANZ’S STRATEGY OF INTRODUCING OBM IN INTERNATIONAL MARKET 8
SUGGESTIONS FOR MR. LIANG TO LEAD THE COMPANY TO GREAT SUCCESS 9
ORDER QUALIFYING FACTORS
✓ Familiarity with Chinese market
In 1991, Liang Senior analysed the Chinese consumer market for a year and sensed that the rapid growth of the Chinese economy will encourage the demand and purchasing power for a wider range of modern products where the competitors could not see the market potential yet.
✓ Less risky to invest in the technology side
The microwave oven was invented by Americans in 1950s, so that Galanz could take the advantage of having less risky to invest in the microwave oven market due to its stable and mature technology.
ORDER WINNING FACTORS
✓ Abundant supply of cheap land and labour (low-price strategy) enabled:
• Increase its production capacity
Galanz optimised its labour resources and production facilities by operating the factory fully 24/7 and 365 days a year.
• Highest volume of the sales in both the domestic and global markets
The company achieved the leading position by cutting prices by 30 – 40% and the lowest price was less than RMB 300 when the range of offered prices were from RMB 1,000 to RMB 3,000 from its competitors.
• Free production line in OEM achieved by a low cost of production
Galanz could expand its production scale and raise the product quality quickly by achieving OEM agreement with Fillony where Galanz gained a free production line as