CASE STUDY OPERATIONS STRATEGY AT GALANZ

Skip to main content. Galanz was founded by Liang Senior, an entrepreneur who was able to see the potential for growth in the microwave market in China. Assumptions For the purpose of this case, the assumption that the market demands for microwave ovens will remain the same for the future years ahead. Once again, Galanz was able to reduce costs and increase its market share. Click here to sign up. Liang Senior had to overcome when embarking in his microwave business opportunity was the lack of technology and expertise in China.

There are also the threats of poor sales performance and higher production costs. If you contact us after hours, we’ll get back to you in 24 hours or less. Furthermore, this caused issues with production planning. There are also the threats of poor sales performance and higher production costs. Galanz production lines operated at 3 shifts, 24 hours, 7 days a week and days a year, to fully utilize their production capacity. Galanz can also invest in branding and marketing to promote consumer awareness about their company.

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Once again, Galanz was able to reduce costs and increase its market share. Galanz realized that little effort was being made in production planning and forecasting for the OBM business which was small batched and diverse.

Galanz had transformed itself from a manufacturer of down feather products into a world class manufacturer of microwave ovens producing more than 50 per cent of the global output in They induced several price wars with competitors and saturated the market with microwave ovens by producing over market demands.

They had to import the strateyy to manufacture microwave ovens from overseas and purchased the production blueprint from Toshiba.

This issue motivated Galanz to develop its own magnetrons and become an original design manufacturer ODM company. The company also began to invest more in the OBM business which required accurate production plans and forecasts.

case study operations strategy at galanz

With businesses expending over the years and more customers demanding variety and customizations Galanz had to prioritize flexibility in order to maintain its market share. Thus the only way to compete the market is to offering a low price.

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Once again, Galanz was able to reduce costs and increase its market share. When dealing with final consumers directly, Galanz production lines would have to allow for product variation and low volume batches which would add significant cost to their low cost operations strategy. Click here to poerations up.

case study operations strategy at galanz

One great competitive advantage that Galanz had was its low cost production capabilities and cost leadership above rival brands, this allowed Galanz to be able to sell microwaves at a lower price than its competitors. Its strategy gave Galanz a vertical integration in its supply chain. To further increase its production capacity, Galanz fully utilized its production facilities and labor resources to extreme by operating 3 shifts per day, seven days a week and days a year.

Remember me on this computer. They were no longer dependent on their suppliers to operate their productions, introduce innovation or advance technological capabilities because Galanz was stratefy this for themselves.

Galanz realized opetations little effort was being made in production planning and forecasting for the OBM business which was glanz batched and diverse. Its strategy gave Galanz a vertical integration in its supply chain. As the company transitioned into a world-class microwave manufacturer it was able to take advantage of public funds and export quotas due to the fact that the company was jointly owned by the Foreign Trade Department of Guangdon in China. At this point, technology was a crucial investment for the galaz in order to survive and grow.

Galanz production lines operated at 3 shifts, 24 galnz, 7 days a week and days a year, to fully utilize their production capacity. However, due to a decline in Chinese exporting quotas and poor future industry profits, its owner decided to invest in developing and manufacturing microwave ovens for the Chinese market which showed business growth opportunities.

Galanz was also facing uncertainties as demand continued to increase which caused forecasting to become difficult. The first strategy was to convince the other manufactures outside of China to transfer their production lines to Galanz and allow them to use the excess of capacity.

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Symptoms and issues Despite the major success of becoming the top microwave seller in China, Galanz had several issues from organizational structure to brand recognition overseas. In order to prioritize Galanz stufy and capabilities, they must analyze their own strengths and weaknesses to maintain their current market positioning and external opportunities to gain more advantages in the market place. Order-winners and order-qualifiers During the early stages of development, in order to be considered a potential supplier for galwnz ovens, Casd had to show order qualifiers attributes.

In Galanz case it was the quality of its products and the high volume production capabilities. The first strategy was to convince the other manufactures outside of China to transfer their production lines to Galanz and allow them to use the excess of capacity.

Galanz was founded by Liang Senior, an entrepreneur who was able to see the potential for growth in the microwave market in China.

At the early stage, Galanz did not have any competitive edge in production technology but only an abundant supply of cheap labor and land.

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Future Success Galanz future success is highly dependent on its ability to manage all parts of its business portfolio. Low cost can be also considered an order qualifier as in order to be considered by customers, Galanz had to offer an affordable price range.

Due to the low product variation they were able to keep caee change overs stuudy a minimum. The company can maintain and continue to provide low cost and high quality products as an OEM, ODM provider, while continuing to invest in the international market as an OBM.

Assumptions For the purpose of this case, the assumption that the market demands for microwave ovens will remain the same for the future years ahead.