1. What were the order winner/order qualifier for Galanz in the microwave oven business
during the early stage of its development?
When Galanz started its business, the microwave oven business in China was in its infancy
and it was less risk to invest in the technology associated with microwave ovens because
this technology had been mature and stable for a long time.
At the early stage, Galanz did not have any competitive edge in production technology but
only an abundant supply of cheap labor and land. Thus the only way to compete the market
is to offering a low price. From 1996 to 2002, Galanz adopted a low-price strategy by
repeatedly implementing cycles of price cutting and production capacity expansion.
2. Rank the importance of Galanz’s operation objectives of cost, quality, flexibility,
delivery, service and innovation. How has the importance changed over years?
At the early stage of development of Galanz, the most important objective is cost, because
it did not have any competitive edge in production technology but only an abundant supply
of cheap labor and land. After Galanz became the leader in the microwave ovens market,
its rivals refused to supply the most important component magnetron to it. So it had to
developed its own design. At that moment, the most important of objective was innovation.
Then by 2003, Galanz began to export its OEM ovens to overseas without brand
recognition.
3. What is role of technology has played in the success of Galanz?
The microwave oven market in the 1980s was in its infancy in China, where competition
