Operations Strategy at Galanz
(11 pages of text)
Starting from a humble beginning of being a manufacturer of down feather products owned by Shunde Township, Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. 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 case aims to:
- introduce students to the concepts of order winner, order qualifiers, operations priorities/objectives.
- show how operations priorities should reflect customer requirements and affect the way a company wants to compete.
- demonstrate how a company can gain competitive advantages through low cost strategy and how to support business strategy using operations strategy and capabilities.
- show students how a company can build multiple capabilities over time and how a company's strategy and operational capabilities can change over time.
- provide students with the opportunity to analyze trade-offs involved in making strategic, operational and marketing decisions as a business expands from the domestic to the global market and from OEM to ODM and OBM.
- challenge students to develop coherent action plans that address future growth objectives.
- help understand the tremendous opportunities and challenges of managing operations and supply chain activities in China.
China, Large, 2003
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