CASE STUDY OPERATIONS STRATEGY AT GALANZ

Their business strategy to manufacture microwave in China at a low cost gave them the advantage to avoid importing fees and getting ahead of other manufacturers that produced their products outside china. Enter the email address you signed up with and we’ll email you a reset link. Galanz was also facing uncertainties as demand continued to increase which caused forecasting to become difficult. GE by Galanz giving the company brand awareness and recognition to end consumers. This tactic made Galanz into an Original Equipment Manufacture OEM , which allowed them to enter into the international market without incurring any additional costs. Assumptions For the purpose of this case, the assumption that the market demands for microwave ovens will remain the same for the future years ahead. Your Answer is very helpful for Us Thank you a lot!

They realized the importance of innovation soon after having to develop and produce its own magnetrons. One of the major issues that actually helped the company strive, was the shortage of magnetrons. In Galanz case it was the quality of its products and the high volume production capabilities. By investing in international market as an OBM would allow Galanz to penetrate many other developing countries where they were not yet present. If you contact us after hours, we’ll get back to you in 24 hours or less.

Galanz was able to drive competitors away in the Chinese market due to their manufacturing capacity and economies of opfrations. Click to learn more https: Galanz was founded by Liang Senior, an entrepreneur who was able to see the potential for growth in the microwave market in China.

Accessed May 23, Also in order to maintain its acquired market share, Galanz would had to invest and maintain a strong distribution network in order to deliver all of its orders on time and in overseas territories.

They had to import the technology to manufacture microwave ovens from operaions and purchased the production blueprint from Toshiba. They realized the importance of innovation soon after having to develop and produce its own magnetrons.

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Galanz had to invest in their own technology to overcome this obstacle. Also technology allowed Galanz to start providing ODM services to its OEM customers, enabling them to design products to suit specific market needs. As the company transitioned into a world-class microwave manufacturer it was able to take advantage of public funds and strqtegy quotas due to the fact that the company was jointly owned by the Foreign Trade Department of Guangdon in China.

case study operations strategy at galanz

In Galanz case it was the quality of its products and the high volume production capabilities. Galanz can also invest in branding and marketing to promote consumer awareness about their company. The company can maintain and continue to provide low cost and high quality products as an OEM, ODM provider, while continuing to invest gslanz the international market as an OBM.

However, due to a decline in Chinese exporting quotas and poor future industry profits, its owner decided to invest in developing and manufacturing microwave ovens for the Chinese market which showed business growth opportunities. Thus the only way to compete the market is to offering a low stuy. This issue motivated Galanz to develop its own magnetrons and become an original design manufacturer ODM company.

Order winner, on the other hand, is the criteria that put Galanz above caee competitors. The second strategy was to create a price war with competitors while saturating the market with excess inventory to drive all other competitors away.

To further increase its production capacity, Galanz fully utilized its strattegy facilities and labor resources to extreme by operating 3 shifts per day, seven days a week and days a year. The company also began to invest more in the OBM business which required accurate production plans and forecasts. Sales and forecasting would also require investment to ensure that demand would be met without excess inventory.

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It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.

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We will write a custom sample essay on Case Write-Up: One great competitive advantage that Galanz had was its low cost production capabilities and cost leadership above rival brands, this allowed Galanz to be able to sell microwaves at a lower price than its competitors. They induced several price wars with competitors and saturated the market with microwave ovens by producing over market demands. We use cookies to give you the best experience possible.

case study operations strategy at galanz

Galanz realized that little effort was being made in production planning and forecasting for the OBM business which stuyd small batched and diverse. At the very beginning, Galanz ranked cost as the most important operations objectives. Sales and forecasting would also require investment to ensure that demand would be met without excess inventory. Due to the low product variation they studdy able to keep line change overs at a minimum.

After the early success resulted by the price war and cost leadership, Galanz started emphasizing the importance of innovation and quality.

Case Write-Up: Galanz Essay

Clearly the lack of technology was a challenge that this entrepreneur was able to overcome. Order-winners and order-qualifiers During the early stages of development, in order to be considered a potential supplier for microwave ovens, Galanz had to show order qualifiers attributes.

Galanz send By clicking “Send”, you agree to our terms of service and privacy policy. Liang saw the opportunity as microwaves seemed unaffordable to Chinese families while most of the market was being dominated by foreign companies. Enter the email address you signed up with and we’ll email you a reset link. Since Galanz enjoyed tremendous economies of scale for low cost production, the company pushes its sales team to work hard so that the market could absorb the additional inventory.