Topics: International trade, Globalization, Strategic planning Pages: 2 (642 words) Published: January 26, 2013
what are Galanz competitive and operation strategy and how does the operation strategy support its competitive strategy

Galanz has built highly its industrial "Threshold" based on its cost advantage.

In China, there is not any field other than the field of microwave-ovens that is featured by a "Highly Concentrated Brand" which even can be deemed as having entered the "Oligopoly" of the industry: The first corp of Galanz itself holds the market share of about 60%, the second corp of LG accounts for about 25% and the corps ranked third of Panasonic and fourth of Samsung only about 5%. Because of such a particularity, the microwave-oven industry has its "Cost Barrier" standing advanced of "Technical barrier". Galanz's annual production capacity of 15 million units has built highly the industrial "Threshold" based on Galanz's total cost as its leading advantage.

Guangdong Galanz Enterprise (Group) Co., Ltd. has been renamed officially from its predecessor which was Guangdong Shunde Guizhou Feather Products Factory since June 1992. In 1992, Galanz introduced a production line of Toshiba microwave-ovens, which was the most advanced one then and completed for starting its production in six months. During the latter 10 years, Galanz has increasingly developed its scale of production with an output from the first yearly capacity of 10,000 units to o.6 million units in 1996. In 1997, it surged to nearly 2 million units and now it has the world's largest microwave-oven production base whose annual production capacity reaches 15 million units. Since 1996, Galanz has repeatedly set off "Price Storm", a large number of small-scale manufacturers were forced to withdraw from the market. Furthermore, passing a few years, the Korean LG is the only one remaining a second position on the market, which can compete with Galanz. Galanz has become the "King of Microwave-ovens" of China and even the world, holding respectively the current monopoly of market shares of 60% of...
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