Case Study #1 – Operations Strategy at Galanz
Discussion Questions:
#1.) One main reason I noticed that lead to the success of Galanz was taking advantage of
China’s relaxed labor laws; it had a continuous line operations that was in business 24
hours a day for 7 days a week and 365 days a year. This had led to a larger production
capacity as opposed to its competitors. Galanz with this took the lead as the main supplier
of microwave ovens domestically. The laws also allow for cheaper labor and its
inexpensive land has cut costs of production. Also, Galanz began to manufacture and
design its own magnetrons, this has cut out the middle man and has them going into direct
manufacturing. Finally, Galanz has pitched it profits back into research and development
to expand its product line.
#2.) An order winner would be a product being sold in a particular segment that marketing
has selected as the target market. For Galanz, the order winners are low cost and low price
in a market segment that really wasn’t tapped in China. Galanz has used its superior
quality and increased production to fulfill its order qualifiers.
#3.) think Galanz made the right move to shift from being an OEM to being an OBM. By
doing so they are receiving more recognition for their products and others companies are