Galanz Case Study Essay

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Operations Strategy at Galanz

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Operations Management

Introduction

The aim of this case study is to analyze the operation strategy of Galanz and asses the potential growth opportunities for Galanz in the future in a global environment. Galanz Gorup based in China was established in 1978 to offer microwave oven, air conditioners and other household appliances (Galanz, 2011).

It is a multinational company operating in more than 100 countries and regions in the world resulting in a well-known brand by being the largest professional microwave producer (Galanz, 2011). As a result they are expanding rapidly with a growth rate more than 100% each year and thus increasing their …show more content…
After entering the market as ODM and OBM Galanz gained a huge success and soon became a threat to the big players in the market. The close cooperating partners became close rivals and ended the cooperation with Galanz by stopping the supply which was a benefit in Galanz value chain. This shorten of supply motivated Galanz to invest in their own R&D in order to design and develop its own magnetrons. This action was token in 1997, when Galanz started out with collaboration with South China University of Technology, and three years after in 2000 Galanz launched its own Galanz-made magnetron.
Galanz shifted its business direction:

“Made in China ( Created in China”

Galanz was now able to start mass production with its own magnetrons and was no longer dependent on other suppliers. Galanz prioritized R&D a lot in the years after launching its first own created magnetron and the ranking of Innovation was an essential part of the company’s goal. The trends are changing and Galanz are aware of the importance of innovation in a globalized world where new technologies and change of trends are very unpredictable. In order to survive in this environment Galanz is recommended to continue investing and prioritizing the R&D part in the value chain.

Over the years
Galanz ranked Cost as the most important objective when entering the
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Galanz Case Study Report ►Company Background: Galanz, a household name for microwave oven, air conditioners and household appliances in China and also a global well-known brand, moves from “the world’s plant” to “global brand” through tremendous effort on R&D and innovation. With the undoubtedly market leader position in China, Galanz gained over 50% market share in global market reported in 2007 and achieved around $3 billion revenue in 2006. ►Operation Problem: With the exponential growth, Galanz’s…

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