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?
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R. Chase, F.R. Jacobs and N.J. Aquilano, Operations Management for Competitive Advantage, 11/e, McGraw-Hill, 2006.
F.R. Jacobs and R. Chase, Operations and Supply Management: The Core, McGraw-Hill, 2008.
R.G. Schroeder, Operations Management: Contemporary Concepts and Cases, 4/e, McGraw-Hill, 2008.
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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?
TEACHING PLAN AND …show more content…
Sales, distribution and services are conducted by the brand owner or another firm downstream in the supply chain.
- The OEM makes the products and delivers them to the point of delivery according to the specifications and requirements of the customer firm.
- When the OEM’s capability to produce according to specifications/requirements is combined with the partner’s capabilities in design, distribution, marketing/sales and services, this can result in an overall competitive advantage. However, the value added by the OEM is very limited.
- Due to the lack of technology innovation, R&D, brands, and internal marketing/sales expertise, many Chinese enterprises have to rely on the OEM mode for exporting products. China’s manufacturing industry is known as the “world’s factory,” competing based on the low cost of labor and land.
ODM (Original Design Manufacturer)
- Refers to a manufacturer that not only manages the manufacturing process for the product, but also designs the product, while not owning the brand label.
- While some Chinese manufacturers may have design capabilities, initially many of them learn