Strategy Analysis for Galanz
Strategy Analysis Report for Galanz
Part 1 Industry Analysis
Galanz successfully transformed its business from down feather products into microwave oven and enjoys a large proportion in the market share both at home and abroad. But why microwave oven industry? We’ll use five forces of competition model to analyze its decision.
Part 2 Value Chain Analysis
As illustrated above, at the beginning of 1990s, microwave oven is a good industry to enter. But there is a huge gap between down feather products and microwave oven products. So when Galanz changed its business, its value chain is weak compared with that of MNCs.
Value Chain |Capital |Brand |Technology |R&D |Manufacturing |Distribution |Operation | |GALANZ | | | | | | | | |MNC | | | | | | | | | Red: weak Green: Strong Yellow: Adequate
As illustrated above, compared with MNCs, Galanz is week in brand recognition and R&D. Also, its technology, distribution and operation needed improvement. However, Galanz is a great advantage in manufacturing thanks to the low labor cost in China.
So, how did Galanz make use of its advantage in value chain to make up for its weaknesses?
Part 3 Resource Analysis
When Galanz decided to enter microwave oven business, it can only use its financial and physical resources it had accumulated. But it managed to acquire the necessary resources through various strategies as below:
Part 4 Strategy Analysis
4.1 Cost-leadership Strategy
At the beginning of its microwave oven business, due to limited resources, as well as the product positioning from its competitors, Galanz used cost-leadership strategy to occupy the market share in the shortest possible time. Meanwhile, this strategy helped Galanz to enhance its internal competence by acquiring new resources.
4.2 Integrated cost-leadership
Part 1 Industry Analysis
Galanz successfully transformed its business from down feather products into microwave oven and enjoys a large proportion in the market share both at home and abroad. But why microwave oven industry? We’ll use five forces of competition model to analyze its decision.
Part 2 Value Chain Analysis
As illustrated above, at the beginning of 1990s, microwave oven is a good industry to enter. But there is a huge gap between down feather products and microwave oven products. So when Galanz changed its business, its value chain is weak compared with that of MNCs.
Value Chain |Capital |Brand |Technology |R&D |Manufacturing |Distribution |Operation | |GALANZ | | | | | | | | |MNC | | | | | | | | | Red: weak Green: Strong Yellow: Adequate
As illustrated above, compared with MNCs, Galanz is week in brand recognition and R&D. Also, its technology, distribution and operation needed improvement. However, Galanz is a great advantage in manufacturing thanks to the low labor cost in China.
So, how did Galanz make use of its advantage in value chain to make up for its weaknesses?
Part 3 Resource Analysis
When Galanz decided to enter microwave oven business, it can only use its financial and physical resources it had accumulated. But it managed to acquire the necessary resources through various strategies as below:
Part 4 Strategy Analysis
4.1 Cost-leadership Strategy
At the beginning of its microwave oven business, due to limited resources, as well as the product positioning from its competitors, Galanz used cost-leadership strategy to occupy the market share in the shortest possible time. Meanwhile, this strategy helped Galanz to enhance its internal competence by acquiring new resources.
4.2 Integrated cost-leadership