Galanz Case Study Essay example

1083 Words May 3rd, 2013 5 Pages
Post these responses directly in your private student journal. Your assignment is due Wednesday, April 10th. Then a forum will open for each of these assignment questions. Please write two-to-three paragraphs per question.
1. What are Galanz's competitive and operations strategies?
Considering the expertise of international players like Panasonic and Toshiba, Galanz didn't really have a competitive advantage with respect to technology. Cost arbitrage (of land and labor) was the chief competitive strategy employed by Galanz to capture the Chinese microwave market. Galanz conjured up mutually beneficial deals with its clients to achieve rapid expansion of production capacity by arranging for production line transfers, process and
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The operations strategy had to be revised due to the large demand and thus, due to shortage of magnetrons and retrenchment by suppliers, Galanz decided to set-up an R&D facility to turn into an ODM produce magnetrons independently. This strategy worked wonders for them since their production capacity boosted, to 44,000 units per day in 2003, and costs went down considerably. The drive to establish firm ground in the overseas market was evident in the self-sufficiency that Galanz was achieving in production. The rapid innovation by improving existing processes by introducing LCD touch-pads and other aesthetic renovations further increased the popularity of their products in the international arena.
Subsequently, Galanz decided to introduce Galanz branded (OBM) microwaves in overseas stores along with its traditional OEM supplies. This was a very critical move as it requires multiple changes in its production such as customized products to cater a large international audience, after sales service and strong customer relationship management. Thus, to meet this demand, Galanz started a small scale production of customized products as opposed to its traditional approach of producing a standard product on a large scale. Also, the company had to invest heavily in enhancing its customer service capabilities so that it could build a loyal customer base and change the mindset of the international audience with regards to Chinese products.

3. What are

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