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Galanz’s success on operation
Description:
It is amazing that a down product factory could transform to a well-know
manufacturer in electrical appliance, especially for microwave oven. When Liang
Senior visited Japan in 1991, he found that microwave oven had huge potential
in Chinese market. At that time, most microwave ovens were imported and most
Chinese households couldn’t afford. Then Liang Senior seized this opportunity
and made up his mind to produce an affordable microwave oven. The low price
strategy and low-cost strategy helped Galanz achieve its early success. Galanz
gained production line, assembly technology and training through OEM.
After the price war, Galanz dominated the microwave oven market in China.
Galanz encountered a problem of shortage of magnetrons. This forced Galanz to
design and develop its own magnetrons. And Galanz began to change from OEM
to OBM. At last, this case talked about Galanz’s structure and system. Liang
found that the centralized structure should be improved. Also, Galanz had to
devote more resources in marketing and customer service. Dealing with OEM,
ODM and OBM orders would be a challenge for the production planning. For the
future, Liang needed new operation strategy to get more success.
Chapter relation:
Order winner and order qualifier are related to Galanz’s case. At first, Galanz
carried out the strategy of order winner. In the 1980s in China, microwave ovens
