Operations Strategy at Galanz
1. What were the order winners/order qualifiers for Galanz in the microwave oven business during the early stage of its development?
Quality is one of most important factors for order qualifiers because it provided reliability for customers to use them. However, the low-price strategy was the order winner during the early stage of development of Galanz. To win orders, Galanz adopted a low-price strategy. Low product prices which can be afforded by domestic market triggered more demand. With this increased demand, Galanz achieved greater economies of scale, which helped to lower costs and prices further. In addition, it also attracted foreign manufacturers to transfer their production facilities to Galanz. With the cheap price of components, Galanz expanded their business overseas successfully in the early stages.
2. Rank the importance of Galanz’s operations objectives of cost, quality, flexibility, delivery, service and innovations. How has the importance changed over the years?
At the initial stage when Galanz entered into the electrical appliance market from the garment industry, it relied on the low price of magnetron production and benefited from the low cost of labor when competing with other companies already existing in the market. They also focused on quality because it is one of the most important requirements to assure a long-term relationship with foreign manufacturers. The further expansion of business through OEM, OBM, and ODM enabled Galanz to be flexible in microwave production. Service and innovation are the part that Galanz initially concentrated less on until 1995. The exponential growth of the microwave oven business threatened the major magnetron supplier and reduced the supply for Galanz. Therefore, Galanz started to initiate its own R&D efforts in 1995 in order to prevent the supply crisis. After 1997, Galanz further collaborated with scientific institutes in order to improve mechanical design and reduce cost.
Galanz
Quality is one of most important factors for order qualifiers because it provided reliability for customers to use them. However, the low-price strategy was the order winner during the early stage of development of Galanz. To win orders, Galanz adopted a low-price strategy. Low product prices which can be afforded by domestic market triggered more demand. With this increased demand, Galanz achieved greater economies of scale, which helped to lower costs and prices further. In addition, it also attracted foreign manufacturers to transfer their production facilities to Galanz. With the cheap price of components, Galanz expanded their business overseas successfully in the early stages.
2. Rank the importance of Galanz’s operations objectives of cost, quality, flexibility, delivery, service and innovations. How has the importance changed over the years?
At the initial stage when Galanz entered into the electrical appliance market from the garment industry, it relied on the low price of magnetron production and benefited from the low cost of labor when competing with other companies already existing in the market. They also focused on quality because it is one of the most important requirements to assure a long-term relationship with foreign manufacturers. The further expansion of business through OEM, OBM, and ODM enabled Galanz to be flexible in microwave production. Service and innovation are the part that Galanz initially concentrated less on until 1995. The exponential growth of the microwave oven business threatened the major magnetron supplier and reduced the supply for Galanz. Therefore, Galanz started to initiate its own R&D efforts in 1995 in order to prevent the supply crisis. After 1997, Galanz further collaborated with scientific institutes in order to improve mechanical design and reduce cost.
Galanz