Galanz

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  • Topic: Microwave oven, Cavity magnetron, Microwave
  • Pages : 2 (673 words )
  • Download(s) : 273
  • Published : December 13, 2012
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Galanz
This case talks about the development path of Galanz from a down product factory to the leader in microwave ovens industry. Galanz was founded in 1978 by Liang Zhaoxian's father, headquartered in Shunde, Guangdong province. It was originally a township enterprise employing a few workers dealing in the trading of down feather products, but after many years development, it was switched to the electrical appliance business with the introduction of microwave oven. Because of its right marketing strategy, it became leader in this industry. Question1: What were the order winner/order quantities for Galanz in the microwave ovens business during the early stage of its development? During the early stage, the order quantities of microwave ovens were 10000 in 1993, 250000 in 1995, and then 2 million in 1997. The detail is following: Year| Domestic(OBM)| Export(OEM)| Export(OBM)| total|

1997| 1.25 | 0.07 | 0.68 | 2.00 |
1998| 3.15 | 0.40 | 0.95 | 4.50 |
1999| 3.00 | 1.50 | 1.50 | 6.00 |
2000| 4.00 | 3.60 | 2.40 | 10.00 |
2001| 6.00 | 3.00 | 3.00 | 12.00 |
2002| 4.00 | 6.23 | 2.77 | 13.00 |
2003| 5.00 | 7.54 | 3.46 | 16.00 |

Question2: Rank the importance of Galanz’s operation objectives of cost, quality, flexibility, delivery, service and innovation. How has the importance changed over years? At the early stage of development of Galanz, the most important objective is cost, because it did not have any competitive edge in production technology but only an abundant supply of cheap labor and land. After Galanz became the leader in the microwave ovens market, its rivals refused to supply the most important component magnetron to it. So it had to developed its own design. At that moment, the most important of objective was innovation. Then by 2003, Galanz began to export its OEM ovens to overseas without brand recognition. To further expand OBM sales, it had to set up sales and service network in the target market...
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