Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Discussion Question:
1. What were the order winners/order qualifiers for Galanz in the microwave oven business
during the early stage of its development?
2. Rank the importance of Galanz's operations objectives of cost, quality, flexibility,
delivery, service and innovations. How has the importance changed over the years?
3. What is the role technology has played in the success of Galanz?
4. What are Galanz's competitive and operations strategies, and how does its operations
strategy support
its competitive strategy?
5. What are the differences between OEM/ODM versus OBM in terms of production,
design, marketing, distribution and customer service?
6. Should Galanz develop its OBM business in the international market? Should Galanz
continue its OEM and ODM businesses?
7. What should Mr. Liang do to lead his company to greater success? Should the company
change its overall cost leadership strategy? How should the company set priorities and
utilize its resources and capabilities to gain competitive advantages in the marketplace?
Analysis
a. Switched to the microwave oven business from the down feather products business in
1992.
b. Achieved 70 per cent of domestic market share and 40 per cent of international market
share in
microwave ovens in 2002.
c. Galanz's brand name was well known in China and was gaining increasing recognition
in some
overseas markets. Products in both OEM and OBM versions were sold in the U.S.,
European, South American and African markets.
d. The total sales volume of all types of Galanz microwave ovens climbed from two
million units in 1997
to 16 million units in 2003. Galanz's revenue increased from RMB2.96 billion in 1999 to
RMB10.1 billion in 2003 (over three-fold increase in four years).
1. What were the order winners/order qualifiers for Galanz in the microwave oven
business during the early stage of its development?
Quality and delivery were the order qualifiers while low cost and low price were the order
winners during the early stage of development of Galanz.
To win orders, Galanz adopted a low-price strategy. Low product prices triggered more
demand. With this increased demand, Galanz achieved greater economies of scale, which
helped to lower costs and prices further. This explains why Galanz could continuously start
price wars. In addition, it also made arrangements for foreign manufacturers to transfer
their production facilities to Galanz. While offering foreign companies low prices (at their
cost), Galanz used the production facilities 24 hours a day, seven days a week to produce
