Case Write-Up: Galanz Essay

This case sh ars with us about the story of Galanz Enterprises Group Co. Ltd. (Galanz) had change itself from a manufacturer of down feather products into a world correct manufacturer of microwave ovens producing more than 50 per cent of the global fruit in 2007. This case describes the warring and operational strategies that Galanz practice sessiond to achieve such a meteoric harvest-feast. The company started out with a clear militant strategy based on address leadership. It designed and implemented trading operations system to help achieve wiped out(p)er cost through deliverance of scale, the deepen of toil capacity from developed countries and full utilization of the visible(prenominal) production capacity.Case Analysis & Problem solving1. What were the order master/order qualifier for Galanz in the microwave oven business during the early map of its development? When Galanz started its business, the microwave oven business in China was in its early childhood and it was less risk to invest in the applied science associated with microwave ovens because this technology had been mature and stable for a long time. At the early stage, Galanz did non have any competitive edge in production technology but only an abundant supply of cheap labor and land. consequently the only way to compete the market is to offering a number 1 price. From 1996 to 2002, Galanz adopted a low-price strategy by repeatedly implementing cycles of price cut and production capacity expansion.2. Rank the importance of Galanzs operations objectives of cost, quality, flexibility, delivery, gain and transitions. How has the importance changed over the years? At the very beginning, Galanz rank cost as the most chief(prenominal) operations objectives. The rest objectives are ranked equally after the cost. After the early success resulted by the price war and cost leadership, Galanz started emphasizing the importance of innovation and quality. Since 1996, the rapid gro wth of Galanz endangered the market share of foreign brands such as Toshiba and Panasonic who are also the suppliers of Galanz on magnetrons. To limited the threat from Galanz, Toshiba and Panasonic focus the supply of magnetrons, which agonistic Galanz developed and produced its own magnetrons. To reduce the cost and emend the quality, Galanz started to vertically amalgamate its supply chain by manufacturing more of its components.3. What is the role technology has play in the success of Galanz. The technology have play very important role in the success of Galanz. The supply crisis of magnetrons motivated Galanz put skillful innovation on a more important position. The collaboration with local anaesthetic university and institutes helped Galanz mastered the core technology of magnetron. Continuous invest on innovation and learning the most advanced technologies from overseas partners allowed the company to reduced costs, improve the design of the products and lifted Galanz i nto the high-end product market.4. What are the Galanzs competitive and operations strategies, and how does its operations strategy support its competitive strategy? Galanzs competitive strategy is cost leadership. To support the competitive strategy of cost leadership, Galanz use below tactics in operations.1) To effectively expand the production capacity, Galanz escalated the production capacity through a free production line transfer from foreign OEM partners. The same tactic was applied to attract component suppliers move up component facilities in Galanz. To further increase its production capacity, Galanz amply utilized its production facilities and labor resources to extreme by operating 3 shifts per day, seven days a week and 365 days a year. 2) repeatedly implementing cycles of price cutting and production capacity expansion. Since Galanz enjoyed tremendous economies of scale for low cost production, the company pushes its sales team to work hard so that the market could absorb the additional inventory. 3) In an additional effort to reduce cost, Galanz started to vertically integrate its supply chain by manufacturing more of its components. most 90% of the microwave oven parts were produced by Galanz.