This case shares with us regarding the story of Galanz Companies Group Co. Ltd. (Galanz) had changed itself via a maker of down feather items into a first class manufacturer of microwave stoves producing much more than 50 per cent of the global output in 2007. This situatio describes the competitive and operational tactics that Galanz used to accomplish such a meteoric progress. The company started out with a clear competitive approach based on cost leadership. This designed and implemented operations system to help achieve lower cost through overall economy of size, the copy of production capacity from developed countries and complete utilization of the available development capacity.

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Case Research & Problem solving

1 . What were the order winner/order qualifier pertaining to Galanz inside the microwave oven business during the early on stage of its development? When Galanz started its business, the microwave oven organization in Cina was in it is infancy and it was less risk to invest in the technology associated with micro wave ovens as this technology was mature and stable for years.

With the early level, Galanz did not have any kind of competitive border in creation technology but only an abundant supply of affordable labor and land. Hence the only way to compete the industry is to giving a low price. From mil novecentos e noventa e seis to 2002, Galanz implemented a low-cost, economical strategy by simply repeatedly implementing cycles of price trimming and development capacity enlargement.

2 . List the importance of Galanz’s operations objectives of cost, quality, flexibility, delivery, service and innovations. Just how has the importance changed over time? At the beginning, Galanz rated cost as the most important businesses objectives. The remaining objectives happen to be ranked similarly after the price. After the early on success resulted by the price war and cost management, Galanz began emphasizing the importance of development and quality. Since 1996, the rapid regarding Galanz endangered the market talk about of international brands just like Toshiba and Panasonic who are also the suppliers of Galanz on magnetrons. To limited the threat from Galanz, Toshiba and Panasonic decrease the supply of magnetrons, which required Galanz produced and made its own magnetrons. To reduce the price and improve the quality, Galanz started to top to bottom integrate it is supply sequence by developing more of the components.

several. What is the role technology has performed in the accomplishment of Galanz. The technology have enjoy very important role in the success of Galanz. The supply turmoil of magnetrons motivated Galanz put technological innovation on the more important situation. The effort with local university and institutes helped Galanz learned the main technology of magnetron. Ongoing invest about innovation and learning advanced technologies coming from overseas associates allowed the company to reduced costs, increase the design of the products and elevated Galanz in to the high-end item market.

four. What are the Galanz’s competitive and procedures strategies, and exactly how does the operations strategy support their competitive approach? Galanz’s competitive strategy can be cost management. To support the competitive approach of expense leadership, Galanz use below tactics in operations.

1) To efficiently expand the availability capacity, Galanz escalated the availability capacity through a free development line transfer from foreign OEM lovers. The same approach was put on attract aspect suppliers preparing component features in Galanz. To further enhance its production capacity, Galanz fully used its creation facilities and labor resources to intense by operating 3 shifts per day, 7 days a week and 365 days a year. 2) Regularly implementing periods of cost cutting and production capability expansion. Seeing that Galanz liked tremendous financial systems of size for low cost development, the company pushes its sales force to work hard so that the industry could absorb the additional inventory. 3) Within an additional effort to lessen cost, Galanz started to top to bottom integrate its supply cycle by manufacturing more of it is components. Regarding 90% in the microwave oven parts were manufactured by Galanz.


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