Operations strategy at Galanz
Operations strategy at Galanz
Operations Management
1. Rank the importance if Galanz’s operations objective of cost, quality, flexibility, delivery, service and innovations. How has the importance changed over the years?
The order winners and order qualifiers for the business in the early stages of was the same – price/cost. This competitive characteristic is what caused the customers to choose the companies good and services over those of our competitors along with making Galanz a viable competitor
In the initial years Galanz concentrated OEM and then shifted towards ODM and OBM
The focus has changed from Cost to service and towards innovation
We believed that by delivering and attracting the masses with new time saving ways of cooking then this technology would become indispensable within the household. After purchasing the technology blue print from Toshiba, sales have exponentially grew production ever since. High volume production was the key then to keep the cost low for a stock standard, basic low quality microwave.
Over the years our objectives needed to change as we faced tough situations. Some of our competitors limited supply of parts which pushed the business towards innovation, to build its own components and meet the demand. While our core objective still remained to be cost driven, delivering low price to the customer and keeping its own expenses down to capture the market share. In order to improve quality and keep the cost down, we invested more than 3% of the company revenue in R&D and continued to manufacture 90% of the microwave components in house using technology that we had developed ourselves. The polar diagram below shows the importance of each performance objective to the Galanz operation as this has changed over the years.
Stages of Galanz Price Wars
1996
40% discount
Sales increased 650,000 Units
Market Share increased to 35%
1997
29-40% discount
Total annual sales reached 2,000,000 units
Domestic market share was 47.6%
1998
30%
Operations Management
1. Rank the importance if Galanz’s operations objective of cost, quality, flexibility, delivery, service and innovations. How has the importance changed over the years?
The order winners and order qualifiers for the business in the early stages of was the same – price/cost. This competitive characteristic is what caused the customers to choose the companies good and services over those of our competitors along with making Galanz a viable competitor
In the initial years Galanz concentrated OEM and then shifted towards ODM and OBM
The focus has changed from Cost to service and towards innovation
We believed that by delivering and attracting the masses with new time saving ways of cooking then this technology would become indispensable within the household. After purchasing the technology blue print from Toshiba, sales have exponentially grew production ever since. High volume production was the key then to keep the cost low for a stock standard, basic low quality microwave.
Over the years our objectives needed to change as we faced tough situations. Some of our competitors limited supply of parts which pushed the business towards innovation, to build its own components and meet the demand. While our core objective still remained to be cost driven, delivering low price to the customer and keeping its own expenses down to capture the market share. In order to improve quality and keep the cost down, we invested more than 3% of the company revenue in R&D and continued to manufacture 90% of the microwave components in house using technology that we had developed ourselves. The polar diagram below shows the importance of each performance objective to the Galanz operation as this has changed over the years.
Stages of Galanz Price Wars
1996
40% discount
Sales increased 650,000 Units
Market Share increased to 35%
1997
29-40% discount
Total annual sales reached 2,000,000 units
Domestic market share was 47.6%
1998
30%