Case Study Of Operations Strategy At Galanz

Operations Strategy at Galanz

At the early stage, when the Chinese Galanz chose to enter the electrical appliance market from garment industry, it took the low cost of magnetron production as a basis, and benefited from the low labor cost, when rivaling different organizations existing in the market. As the production developed, we can see the quality as the main order qualifier because it created a good name and a gained the trust of the customers. In its turn, the low-price strategy was the order winner underlying phases of advancement of Galanz.

Their product was more affordable for domestic households, and thus the demand continued to grow. With this expanded interest, Galanz accomplished more notable economies of scale, which helped

Their operations systems directly supplemented these techniques through a number of ways of ways. Operationally, Galanz expected to raise production limit through free manufacturing line transfer, which immediately developed production scale and raised product quality.

Moreover, Galanz worked 24 hours/7 days a week. This stands out from conventional Western working hours of 40 hours a week and allowed them to increase production even more and reduce the costs.

Finally, they sought after vertical incorporation of the supply chain to again decrease costs and enhance quality, prompting 90% of Galanz 's microwave parts being created by Galanz itself. Each of these operational systems supported the competitive cost leadership strategy by using economies of scale to create substantial large-scale production and accomplish low-cost efficiency.

As the market changes with time, the competitive environment changes as well, and it also changes OQ/OW. It alters the company’s competitive priorities as well. When is who identifies/designs the product manufactured and who owns the brand name. In OBM mode, the manufacturer not only designs and manufactures the product, but also owns the

The exponential development of the microwave business debilitated the significant magnetron supplier and decreased the supply for Galanz. The reduction of magnetrons supply to Galanz made it to start its own R&D endeavors in 1995 keeping in mind the end target to in order to provide the production with spare parts. After 1997, Galanz further teamed up with scientific institutions to improve the mechanics and reduce costs. Galanz saw the significance of R&D and service based on changing demands from the customer. In the early stage, Galanz could just offer the low cost to the clients. However, after their OBM business began Galanz needed to confront another group of clients with more demanding needs and provide new competitive service to