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.
