Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Running head: Galanz Enterprises Case Study
Galanz has seen great success since its entrance into the microwave business in the
1990s. Galanz core competency is manufacturing a microwave and its components cheaper than
anyone else can. While Galanz’s high quality products qualify orders, it is Galanz low cost and
low prices that serve as their order winners (Schroeder, Goldstein, & Rungtusanatham, 2013, p.
32). Galanz’s success is due to large scale manufacturing operations that allow the company to
continually produce a high quality product at a much lower cost than competitors. Galanz
benefits from having an abundance of cheap land and labor. Their ability to operate factories
24/7 results in greater output than competitors and creates better economies of scale in
production. Galanz has also had success in striking deals with outside manufacturers to use their
excess capacity for Galanz’s own production, which contributes to Galanz low cost advantage.
Because of their superior low cost advantage Galanz has had success in using price wars to
