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The transformation of operation strategy in Galanz

October 1, 2014
Galanz entered the electrical appliance market in 1992. The overall development model of
Galanz is a true portrayal of OEM development. OEM provides a shortcut for Chinese
electrical appliance enterprises into the international market as an important cooperative
processing model. Otherwise, it also brings weak stability.
The change from OEM to ODM/OBM helps the Chinese household electrical appliance
enterprises to create the brand management. Galanz has become the world's largest
microwave oven manufacturer because it seizes the opportunity to launch the operation
strategy. They use the cost leadership strategy to win market share, the media and
consumer’s affinity to enhance the customer satisfaction. Then they enhance the core
As related in the chapters, the operations function of an organization is responsible for
producing and delivering goods or services of value to customers of the organization.
Operations managers make decisions to manage the transformation process that converts
inputs into desired finished goods or services.
In this case, Galanz uses the vertical integration strategy at the beginning. In the stage of
the transition, it reduced the investment in the existing industry and then put money into
microwave industry when it saw the poor textile industry outlook. One of the key factors
in the success of operation strategy is choosing the right business areas.
Galanz adjusted the old price competition strategy and differentiated the OBM and OEM,
avoided the conflict between them. At the same time, they established overseas sales
channels, overseas sales marketing staff to develop a complete sales strategy. Galanz also
made a huge progress in manufacturing as an OEM and ODM, however when company

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