The second strategy was to create a price war with competitors while saturating the market with excess inventory to drive all other competitors away. 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. Galanz was able to drive competitors away in the Chinese market due to their manufacturing capacity and economies of scale. Also in order to maintain its acquired market share, Galanz would had to invest and maintain a strong distribution network in order to deliver all of its orders on time and in overseas territories. Clearly the lack of technology was a challenge that this entrepreneur was able to overcome. 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. Clearly the lack of technology was a challenge that this entrepreneur was able to overcome.
What is the role technology has played in the success of Galanz. Enter the email address you signed up with and we’ll email you a reset link. How about receiving a customized one? Should internationalism be embraced? One of the major issues that actually helped the company strive, was the shortage of magnetrons. Also technology allowed Galanz to start providing ODM services to its OEM customers, enabling them to design products to suit specific market needs. Its strategy gave Galanz a vertical integration in its supply chain.
Order winner, on the other hand, is the criteria that put Galanz above its competitors. 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.
Case Write-Up: Galanz Essay
Galanz Essay Essay Topic: 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.
In addition, the competitive rivalry and new business entry threats were low.
Galanz was founded by Liang Senior, an entrepreneur who was able to see the potential for growth in the microwave market in China. They could control not only the final product, but could also control the components manufacturing as well.
Click to learn more https: Vertical integration gave them a supply power that other manufacturers did not have and gave them the ability to offer the lowest price that buyers could not bargain with. A threat to their business is the fierce competition strateby other international companies and branded products. Log In Sign Up. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.
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 sutdy as an OBM.
How about make it original?
They were able to get ahead of its competitors quickly with strategies like transferring production lines from other manufacturers to gain extra capacity and achieve economies of scale.
They were no longer dependent on their suppliers to operate their productions, introduce innovation or advance technological capabilities because Galanz was doing this for themselves.
Also technology allowed Galanz to start providing ODM services to its OEM customers, enabling them to design products to suit specific market needs. As the company transitioned into a world-class microwave manufacturer it was able to take advantage of public funds and export quotas due to stuey fact that the company was jointly owned by the Foreign Trade Department of Guangdon in China.
Liang saw the opportunity as microwaves seemed strztegy to Chinese families while most of the market was being dominated by foreign companies. They had to import the technology to manufacture microwave ovens from overseas and purchased the production blueprint from Toshiba.
GE by Galanz giving the company brand awareness and recognition to end consumers. Thus the only way to compete the market is to offering a low price.
(DOC) Galanz Case | E WN –
Not long after discovering innovation through research and development for microwave ovens, Galanz became an original brand manufacturer OBM. As an OBM, Galanz would have to invest and transfer resources to not only production but also forecasting and design planning, customer service, marketing and distribution networks.
Future Success Galanz future success is highly dependent on its ability to manage all parts of its business portfolio. Liang took advantage of several economic changes and incentives in China such as low operatipns costs to start his new microwave company. Skip to main content. Also technology allowed Galanz to start providing ODM services to its OEM customers, enabling them to design products to suit specific strqtegy needs.
(DOC) Galanz Case | E WN –
One of the major issues that actually helped the company strive, was the shortage of magnetrons. 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. Help Center Find new research papers in: We will write a custom sample essay on Case Write-Up: This tactic made Galanz into an Original Equipment Manufacture OEMwhich allowed them to enter into the international market without incurring any additional costs.