On a visit to Japan 1991, Liang Senior identified the microwave oven as a product with great potential in China. Little did he know what was about to unfold in front of him. Over the next 20 years, Galanz became a powerhouse in the microwave oven market, not only in China, but the world.
The purpose of this report is to critically discuss three decisions taken by Galanz that successfully reconciled the market-based and resource-based view of strategy from 1997-2003. The three decisions chosen are Strategic Sourcing, Process Types and Quality & Improvement. This report is divided into three standalone sections which reflect Galanz’ decisions.
Section 1
Strategic Sourcing
Initially, it is no secret that Galanz’ main sources of competitive …show more content…
Their main objectives were flexibility, cost and quality – they needed to choose the appropriate process type carefully. In terms of layout, we can see that Galanz operated with a mixture of functional, cell and product layouts, as they operated with both high and low varieties of products, but the volume of these remained constant. Galanz were also involved in creating both high and low-end products, so they needed to remain active and be aware of the potential change in process. The company then faced a dilemma, which to prioritise – OEM, ODM or OBM …show more content…
They were constantly improving not only themselves, but the company as a whole so in turn the consumer could get the greatest experience. They breached every gap; customers specification, design, delivery and communications. They initially tasted success when they designed their own magnetron and had the quality, know-how and ability to do so. Galanz used a good deal of TQM, defined as “the integration of all functions and processes within an organisation in order to achieve continuous improvement of the quality of goods and services…the goal is customer satisfaction” (Ross & Perry, 1999, p1). Another example of Galanz’ excellent quality and improvement was their enhancement of the aforementioned R+D capability and product innovation. R+D is all about improvement and they showed this as it represented more than 3% of annual revenue. Other examples include introducing new features and technologies, new cooking functions, power supply specifications, LCD touchpads etc. These type of innovations meant that the company was constantly growing and growing, putting more pressure on competitors, and even more pressure of themselves to reach their
The purpose of this report is to critically discuss three decisions taken by Galanz that successfully reconciled the market-based and resource-based view of strategy from 1997-2003. The three decisions chosen are Strategic Sourcing, Process Types and Quality & Improvement. This report is divided into three standalone sections which reflect Galanz’ decisions.
Section 1
Strategic Sourcing
Initially, it is no secret that Galanz’ main sources of competitive …show more content…
Their main objectives were flexibility, cost and quality – they needed to choose the appropriate process type carefully. In terms of layout, we can see that Galanz operated with a mixture of functional, cell and product layouts, as they operated with both high and low varieties of products, but the volume of these remained constant. Galanz were also involved in creating both high and low-end products, so they needed to remain active and be aware of the potential change in process. The company then faced a dilemma, which to prioritise – OEM, ODM or OBM …show more content…
They were constantly improving not only themselves, but the company as a whole so in turn the consumer could get the greatest experience. They breached every gap; customers specification, design, delivery and communications. They initially tasted success when they designed their own magnetron and had the quality, know-how and ability to do so. Galanz used a good deal of TQM, defined as “the integration of all functions and processes within an organisation in order to achieve continuous improvement of the quality of goods and services…the goal is customer satisfaction” (Ross & Perry, 1999, p1). Another example of Galanz’ excellent quality and improvement was their enhancement of the aforementioned R+D capability and product innovation. R+D is all about improvement and they showed this as it represented more than 3% of annual revenue. Other examples include introducing new features and technologies, new cooking functions, power supply specifications, LCD touchpads etc. These type of innovations meant that the company was constantly growing and growing, putting more pressure on competitors, and even more pressure of themselves to reach their