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1.What has contributed to the success of Galanz?
First of all, Liang Senior is an enterprising man. He gave up the stagnant “ Guizhou Down
Product Factory" and joined in the microwave oven market, which that product is not be
familiar by Chinese people. Secondly, Galanz increased production lines through free
production line transfer, gained the right to use its excess capacity of production line for its
own products, and component suppliers were encouraged to set up manufacturing facilities
at Galanz. Thirdly, Galanz has abundant supply of cheap labor and land, it makes the
factory has lower manufacturing overhead. Use low profit to expand the scale; so to reduce
the production cost, the formation of absolute advantage that cannot be beat in a single
product. And the relaxed labor law in China, which enabled them to operate their factory
on a three shifts per day, seven days a week and 365 days a year. Galanz’s non-stop
production had made its production capacity at least four times more than its Western
counterparts, and launch a price war such that it could fully dominate the domestic
microwave oven market. Fourthly, Galanz designed and developed its own magnetrons,
and transformation from OEM to ODM. Fifthly, Galanz increases its investment in R&D
and redesigning products with focus on new features and technologies.
2.What are the “Order qualifier" factors? “Order winner" factors?
An order winner is an objective that will win orders from the customers in a particular
segment that marketing has selected as the target market. For Galanz, the order winners are
