What are the differences between OEM/ODM versus OBM in terms of production,design,marketing,distribution and customer service? Both the terms of ODM and OEM are related to the manufacturing industry. ODM stands for Original Design Manufacturer, and OEM refers to Original Equipment manufacturer. It is quite confusing to see the difference between the two, as they are very similar. OEM refers to a company or a firm that is responsible for designing and building a product in accordance with its own specifications, and then selling the product to another company or firm, which is responsible for its distribution. The one company produces products on behalf of another company, after which the purchasing company markets the product under it own brand name.An advantage of OEM is that purchasers can acquire products without setting up a factory. The disadvantage is that customer can easily purchase illegal copies of software, which is not advisable (Difference Between,2016). An ODM company or firm, on the other hand, is responsible for designing and building a product as per another company’s specifications. The advantage of ODM is that the company do not have to spend time designing the product, this allow the company to spend more time on it core operations as well as benefiting from the skills and experience of the manufacturer. The disadvantages are that the customer will not receiving a unique product, which mean there may be competing products on the market exactly the same. OBM is normally a company that sells an entire product made by a second company or unclosing a component from second company sources as its own branded product. Selling the product of the second company under its own brand just adds a virtual extrinsic value to the product. OBM offer a variety of advantages compared to private label,generic, or store brand items, including product availability: brand name items are normally easy to find and perceived quality: brand name items are often seen as having higher quality than comparable private label items. The disadvantage is the items is cost because brand name items often cost more than private label, generic or store brand items (Intrepid,2016). OEM and ODM versus OBM in overseas market for Galanz China is consumers were not familiar with Galanz as a brand of microwave ovens and strategic partnership with multinational companies such as K-mart and Walmart were confined to OEM deals.Moreover, Liang junior began to offer Galant-Branded microwave ovens to superstores and technical support from Fillony to help Galanz set up R&D centres overseas to showcase Galanz branded microwave ovens in the country.Lastly, its ratio of Galanz OBM and OEM microwave ovens rose from 1:9 to 3:7 from 1997 to 2003 (BenefitOf,2016). Reference: ODM.(2016) Difference Between ODM and OEM.Available at:http://www.differencebetween.net/ miscellaneous/difference-between-odm-and-oem/ [Acc.

1. What are the differences between OEM/ODM versus OBM in
terms of
production,design,marketing,distribution and customer service?
Both the terms of ODM and OEM are related to the
manufacturing industry. ODM stands for
Original Design Manufacturer, and OEM refers to Original
Equipment manufacturer. It is quite
confusing to see the difference between the two, as they are
very similar. OEM refers to a company
or a firm that is responsible for designing and building a
product in accordance with its own
specifications, and then selling the product to another company
or firm, which is responsible for its
distribution. The one company produces products on behalf of
another company, after which the
purchasing company markets the product under it own brand
name.An advantage of OEM is that
purchasers can acquire products without setting up a factory.
The disadvantage is that customer can
easily purchase illegal copies of software, which is not
advisable (Difference Between,2016).
An ODM company or firm, on the other hand, is responsible for

2. designing and building a product as
per another company’s specifications. The advantage of ODM is
that the company do not have to
spend time designing the product, this allow the company to
spend more time on it core operations
as well as benefiting from the skills and experience of the
manufacturer. The disadvantages are that
the customer will not receiving a unique product, which mean
there may be competing products on
the market exactly the same.
OBM is normally a company that sells an entire product made
by a second company or unclosing a
component from second company sources as its own branded
product. Selling the product of the
second company under its own brand just adds a virtual
extrinsic value to the product. OBM offer a
variety of advantages compared to private label,generic, or store
brand items, including product
availability: brand name items are normally easy to find and
perceived quality: brand name items
are often seen as having higher quality than comparable private
label items. The disadvantage is the
items is cost because brand name items often cost more than
private label, generic or store brand

3. items (Intrepid,2016).
OEM and ODM versus OBM in overseas market for Galanz
China is consumers were not familiar
with Galanz as a brand of microwave ovens and strategic
partnership with multinational companies
such as K-mart and Walmart were confined to OEM
deals.Moreover, Liang junior began to offer
Galant-Branded microwave ovens to superstores and technical
support from Fillony to help Galanz
set up R&D centres overseas to showcase Galanz branded
microwave ovens in the country.Lastly,
its ratio of Galanz OBM and OEM microwave ovens rose from
1:9 to 3:7 from 1997 to 2003
(BenefitOf,2016).
Reference:
ODM.(2016) Difference Between ODM and OEM.Available
at:http://www.differencebetween.net/
miscellaneous/difference-between-odm-and-oem/ [Accessed on
6 March 2017]
Advantages.(2016) Advantages and Disadvantages of ODM and
OEM.Available at:http://

4. intrepidsourcing.com/trade-wiki/original-design-manufacturer-
odm-introduction-pros-cons/ [Accessed on 7
March 2017]
OEM.(2016) Benefits Of OEM.Available
at:http://benefitof.net/benefits-of-oem/ [Accessed on 7 March
2017]
http://www.differencebetween.net/miscellaneous/difference-
between-odm-and-oem/
http://intrepidsourcing.com/trade-wiki/original-design-
manufacturer-odm-introduction-pros-cons/
http://benefitof.net/benefits-of-oem/
Unit VIII Reflection Paper
This assignment provides you with an opportunity to think
critically about business ethics, business relationships,
leadership, and how each contributes to an organization’s
overall culture. Write a 500-word reflection paper by addressing
each of the following items:
How does ethics impact business relationships within an
organization?
How can leaders and their leadership styles impact the ethical
practices within an organization?
How does ethics impact an organization’s overall culture?
Based on what you have learned in this course, how would you
describe your approach to business ethics (i.e., What are your
principles? What is your guide?)?
Conclude with a reflection on how the insights you gained
from this course might affect the way you view your actions and
thoughts in the future.
Your essay should be at least 500 words in length, double-
spaced, and written in Times New Roman, 12-point font. You
will not need a title page or a reference page, as this paper is all
about your thoughts.

5. OPERATIONS STRATEGIES
Competitive Strategy
At the early stage of development, Galanz was in the OEM
business with products characterized by large production
volume and low variety. Considering the expertise of
international players like Panasonic and Toshiba, Galanz doesn't
have a competitive advantage in terms of technology.
Thus, to gain leverage in the domestic market, they employed a
cost leadership strategy to capture the Chinese microwave
market, by providing low priced high quality microwave ovens
with on-time delivery. This also means that Galanz operations
have to be highly efficient.
The second tactic was to repeatedly launch a price war to fully
dominate the domestic microwave oven market. Price-cutting
mechanism relied on setting the average unit cost of production
along its growth curve. Thie aggressive pricing strategy led
many industry players to withdraw from the market.
To achieve its competitive strategy, Galanz adopted a few
operation strategies:
a. Full Resource Utilization
Operation strategies adopted include having employees in
production line to work 3 shifts daily, 24 hours per day, every
day of the year. This way, EOS can be gained by having low
labour cost and large number of available labour.
b. Vertical Integration
In an additional effort to reduce cost, Galanz started
to vertically integrate its supply chain by manufacturing more
of its components. About 90% of the microwave oven parts
were produced by Galanz.

6. c. Free production line transfers
Galanz also conjured up mutually beneficial deals with its
clients/foreign OEM partners to achieve rapid expansion of
production capacity by arranging for production line transfers,
process and quality enhancements. The same tactic was applied
to attract component suppliers to set up component facilities in
Galanz.
Repeatedly implementing cycles of price-cutting and production
capacity expansion, Galanz is able to enjoy tremendous EOS for
low cost production; the company pushes its sales team to work
hard so that the market could absorb the additional inventory.
Dominated the domestic market through this strategy which was
attractive to cost sensitive Chinese market. However, due to the
risks involved in launching a Chinese product in the
international market, Galanz entered the overseas market as an
OEM supplier.
When Galanz started its OBM business, its competitive strategy
changed to differentiation, which also means that the company
has to make products characterized by low production volume
but high variety. In that sense, Galanz had to be flexible,
service-oriented and innovative.
Collaborations with large retailers such as K-mart and Wal-mart
facilitated the successful entry of Galanz in the international
market. Low cost, high production was maintained through
cheap labour and large ability. Popularity rose in overseas
market due to its consistent efforts in maintaining low cost and
high supply.
Started off its OBM venture by introducing Galanz branded
microwaves to its existing OEM customers. Galanz further
pushed its efforts in gaining worldwide recognition by investing
in a dedicated R&D facility to match international competitors.

7. The supply was matched with the demand through outsourcing
of magnetron manufacture, and subsequently, with development
of independent magnetrons.
Thus, after the superlative domestic success, Galanz focused on
building a world brand by maintaining its low cost, abundant
supply and stressed on essential aspects such as customer
relation management and after sales support.
These operations strategy provides the blueprint for operational
decision-making. Operations strategy and decisions
must support competitive strategy and be consistent with other
functional strategies in order for Galanz to be successful. An
effective operations strategy can add value by allowing the
exploitation of market positioning.
3. The success of technology to Galanz
Technology has helped and made it ways in turning Galanz into
a high innovative brand today from manufacturing, OEM, ODM
to OBM. Galanz are able to achieve cost-effective production in
producing lower cost of production goods making it one of the
highlights of the Galanz main strength.. The technology has
helped to sustain and dominate the domestic market by reducing
substantial prices by 30-40 percent from the original market
price. This practice allowed them to succeed in achieving
incredible margin in dominating the domestic market and
oversea market.
Thus, they are able to capture the economic of scale for
domestic market at 50 percent and also overseas. Galanz shifted
its business model from a “world factory” to “world brand” in
producing OEM and OBM product by offering and provide
consumer more options in choosing Galanz product or having to
specification/customizing the product based on their taste. Thus,
Galanz have carried on becoming an innovative and diversify

8. company.
The increase rate of technology usage, Galanz are able to speed
and increase larger volume orders with time delivery schedule
in the manufacturing which are able to “reduce the production
efficiencies with the processors and also as to reduce the
production costs expenses and allowing them to be more
competitive among their rival counterparts”(Ge, G.L. & Ding,
D.Z. Asia Pac J Manage (2008) 25: 667) Galanz are able to
expand OEM and OBM product “inexpensively by avoiding cost
associated with promoting its brand and establishing a
distribution network oversea” (Wilson, I. 2017) . Thus, Galanz
have expansion in the U.S. and South Korea for R&D efforts
and researches centers.
Ge, G. and Ding, D. (2007). A strategic analysis of surging
Chinese manufacturers: The case of Galanz. Asia Pacific
Journal of Management, 25(4), pp.667-683.
http://link.springer.com.ucd.idm.oclc.org/article/10.1007%2Fs1
0490-007-9073-0
Wilson, I. (2017). 143 THE OEM - OBM DEBATE: FACTORS
INFLUENCING CHIN ESE FIRMS' BRANDING DECISIONS
IN THEIR INTERNATIONALISATION PROCESS. [online]
globeco.ro. Available at: http://www.globeco.ro/wp-
content/uploads/vol/split/vol_1_no_2/geo_2013_vol1_no2_art_0
16.pdf [Accessed 16 Mar. 2017].
http://www.globeco.ro/wp-

9. content/uploads/vol/split/vol_1_no_2/geo_2013_vol1_no2_art_0
16.pdf
Ranking the importance of Galanz’s operations objectives of
cost, quality, flexibility, delivery, service and innovations.
How has the importance changed over the years?
#1 Cost
Cost has always been the most important operations objective
for Galanz. In the beginning Galanz did not have any
competitive edge in production technology, but only an
abundant supply of cheap labor and land, thus a low price as an
operations objective was the only way to compete in the market
(Ng, Li 2010). From 1996 to present Galanz implemented a
low-price strategy by repeatedly implementing cycles of price
cutting and production capacity expansion (Ng, Li 2010).
Further reinforcement of cost as the most important operational
objective can be seen with Galanz’s strategy of escalating its
production capacity through a free production line transfer, and
using the same tactic to attract component suppliers to set up
component production facilities in Galanz, which dramatically
reduced production cost(Ng, Li 2010). Furthermore, the series
of price wars with competitors over the years, and the repeated
per unit price reduction allowed for Galanz’s domination of the
market due in a large part to price as a top operational
objective. This is clear evidence of cost being the most
important operational objective for Galanz (Ng, Li 2010).

10. #2 Quality
Quality comes in number 2 on our list. In the beginning Galanz
had adopted large-scale production to achieve low-cost
efficiency and in the past the products were low quality with
less variety, but eventually the Galanz realized the inherent
connection between innovation and improved quality (Ng, Li
2010). Starting with the improved mechanical design of the
magnetron in 2000 the research and development team improved
many existing product structures, power supply specifications,
and product appearances. Furthermore Galanz also started to
vertically integrate its supply chain by manufacturing more of
its components, which provides evidence of Glalanz’s
commitment to quality as a more recent operational objective
(Ng, Li 2010).
#3 Innovation
Innovation is the third most important operational objective for
Galanz due to the close relationship between cost and
innovation. As Galanz grew at a very rapid rate in the late
1990’s there was a problem with the supplying enough
magnetrons for their microwaves, and the company realized that
innovation was the smartest long term solution (Ng, Li 2010).
With research collaboration they started to produce their own
magnetrons starting in the year 2000, and Galanz’s magnetrons
had improved mechanical design to enhance quality and
function compared to Japanese competitors. This success
pushed Galanz to invest significantly in R and D, which
eventually developed into the Research Institute of Household
Electrical Appliances (Ng, Li 2010). Galanz’s research institute
is clear evidence of Innovation as high on our list of ranking
Galanz’s operational objectives.
#4 Flexibility
Product flexibility as an operational objective was not always a
priority for Galanz, but once R and D was pursued as a company

11. strategy starting in the year 2000, the company leadership
started to understand the value of product flexibility (Ng, Li
2010). The marketing manager of Galaz says it best, “In the old
days we only followed the trend, but now we realize the
importance of innovation. We now strive to localize our design
to suit each target market (Ng, Li 2010).” This indicates
product flexibility as recent operational objective for Galanz,
but due to the recent nature of this operational objective it
comes in at number 4 on our list.
#5 Delivery
Delivery is ranked at number 5 because of seeming
inconsistency of this operational objective for Galanz. In the
beginning the focus for product delivery was overseas down
feather garment industry, then over time they started to change
their product to microwaves sold only in China, then they
expand their microwave market share overseas until in 2002
they reached 40% of the international market share (Ng, Li
2010). The constantly changing product delivery from foreign
markets to domestic markets, then changing again to
international markets seems to be evidence that delivery has not
always been a top operational objective priority for Galanz.
#6 Service
Service comes in at number 6 on our list of operational
objectives because up until recently there has been little focus
on providing service to the customer once the microwave is sold
in a foreign market (Ng, Li 2010). Customer support including
after sales services, product repair and maintenance, handling of
customer complaints and returns, and warranty claims required
significant resources on Galaz’s part to train the corresponding
staff and establish a platform to handle user requests, so until
recently these were outsourced and not seen as a high ranking
operational objective(Ng, Li 2010).

12. Bibliography
Stephen Ng, Barbara Li (2010) Operations strategy at Galanz,
Ontario, Canada: Richard Ivey School of Business Foundation
The Order winners/order qualifiers for Galanz in the microwave
oven Business
The order winners is a competitive focus points which includes
the superior quality, product outline, cost of production, fast
delivery, flexibility and picture that cause a company’s clients
to choose the organizations products and services. Clients settle
on their buying choice emotionally and legitimately on a view
of client incentive for money. The oblivious personality
conveys the choice to the conscious personality which searches
for motivations to defend the choice. These choices depend on
client esteem properties like execution, accessibility, cost and
engaging quality of design which reflect both the necessities
and wants of the client and their basic inspirations. Moreover, a
request qualifier is a normal for an item or service that is
required all order for the product or service to try and be
considered by a client. An order winner is a trademark that will
win the offer or client's buy. In this manner, firms must give the
qualifiers keeping in mind about their goal to get into or remain
in a market.
An order qualifier is a normal for a product or service that is
required all together for their products or services to try and be
considered by a client and an order winner is a trademark that
will win the offer or clients buy (Referenceforbusiness.com,
2017). Order winner give reasons why clients should pick your
business, item or service. Conversely, inability to meet the base
models on request qualifiers give reasons why clients will
dismiss or disregard your business, product or service. In the
case of Galanz, there are some order qualifying and winning
variables of their microwave oven which are created their
segments parts for their producer. Arrange winning part has
been resolved in view of Galanz Corporation.

13. One of the main key that made them qualifier is their cost of
production. Galanz built up a successful value reduction
methodology through economic scale. After development itself
as the business leader in 1995, it concentrated on sloping up
production. In the next years, output dramatically increased to
650,000 products, permitting the organization to lower costs by
40 percentages from 500 to 600 Yuan for every microwave
oven. At that point, in the year of 1997, it expanded the
generation to 1.98 million, much more than the 1.5 million
products output of the other multinational company whirlpool.
The next thing that made the company product factory
developed with smart automatic system which gives a superior
quality for their products that’s the main reason the company is
able to give guarantee for their products. From the hardware
computerization automatic system to modern specialists full
work man, The Company years ago started to investigate with
IDQUO which is well build version of made in china and
RDQUO. With the assistance of IDQUO, intelligent
improvement affectation point and RDQUO; advance business
items in the top of the line & intelligent transformation(Xian,
1996). The Galanz’s smart factory facility, the processing plant
computerization change wherever is the RDQUO with the centre
of the intelligence of assembling.
Galanz is the company who give always important value for
building customer relationship. the company noticed that just by
selling the product is not able to build their brand name in the
market. Customer must know about the products and services of
the company. They wanted advice and reviews from the
customer, so in the year 1995 the company distributed around
1000 exhortation sections about microwave ovens on almost 150
daily papers in china which is “user guide of microwave oven”
columns (Quintanilla, 1999). Later in 1996, the company come
up with the cooking contest in more than 10 cities in china. In
the same year, they published the guide about “900 ways of
Microwave oven manual” & “how to purchase and use
microwave oven” (Krepshaw, 2013). In 1997, they developed a

14. biggest event called” knowledge of quality of microwave oven”
which is in 30 cities of china.
Reference
Xian, D. (1996). Innovative firm leads in microwave market |
chinadaily.com.cn. [online] Chinadaily.com.cn. Available at:
http://www.chinadaily.com.cn/epaper/html/cd/1996/199612/199
61219/19961219010_1.html [Accessed 7 Mar. 2017].
QUINTANILLA, C. (1999). Forget the outdated Microwave:
New Oven Does Crispy and Brown. [online] WSJ. Available at:
http://www.wsj.com/articles/SB930694487830830804
[Accessed 7 Mar. 2017].
Krepshaw, B. (2013). Galanz microwave pops out with
faceplates. [online] CNET. Available at:
https://www.cnet.com/news/galanz-microwave-pops-out-with-
faceplates/ [Accessed 6 Mar. 2017].
Referenceforbusiness.com. (2017). Order-Winning and Order-
Qualifying Criteria - strategy, organization, system, advantages,
school, model, company, business, competitiveness. [online]
Available at:
http://www.referenceforbusiness.com/management/Ob-
Or/Order-Winning-and-Order-Qualifying-Criteria.html
[Accessed 17 Mar. 2017].