Operation management Galanz Case Presented as Assignment Ace Institute of Management

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A CASE STUDY ON GALANZ
OPERATION STRATEGY
Prepared By
Shristy Manandhar
Shraddha Bhattarai
Sailendra Adhikari
Sachet Shrestha

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Table of Contents
•Galanz Objectives
•Competitive and Operations Strategy
•How Operation Strategy supported Competitive
Strategy ?
•OBM in International Market
•Continuation of OEM and OBM Business
•Conclusion

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Operation Objectives
Cost: large scale production to achieve low cost
efficiency
Quality: set up R&D and invested in technology and
Innovation
Flexibility: began manufacturing its own magnetrons
Delivery: to launch its branded products in the over
seas market
Service : to provide a competitive level of service to a
large pool of end customers
Innovations :to understand and develop the technology
to design and manufacture its own components

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Competitive and Operations Strategy
Competitive Strategy :
a.To achieve low cost efficiency
b.To provide low priced micro oven to its customers
Operation Strategy:
a.Price cutting to maintain price leadership/ provide at low
cost
b.To Increase production capacity to achieve low cost
efficiency.
c.Switching from OEM to ODM to enter into the
international market.
d.Manufacturing technologies of its own

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How Operation Strategy supported
Competitive Strategy ??
Low cost strategy: Galanz did not have any competitive
edge in the production technology. During that time,
microwaves were all imported and sold at relatively high
prices.
To increase production capacity: Galanz adopted the
free production line transfer strategy
To utilized labor resources fully: By increasing labor
hours in comparison to many western companies.

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OEM In International Market
•OEM implementation by Galanz
•Entry on Global Market using OEM
•Exceeded other Chinese manufacturer
•Large scale production with low cost
•OEM Microwave Ovens ( Primary Exports)
•No brand recognition
•Investment in R&D

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Continuation of OEM and OBM Business
• Import of new technology leads to cost reduction
and differentiation
• Price leadership offering good quality
• Marketing strategy should be strong for building
brand
• Proper understanding of target market and
market segmentation
• Difficult to maintain Brand on OBM business due
to brand unawareness, marketing costs etc.

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Galanz Greater Success (Conclusion)
• Evolving and leading dominant player in market
• Low cost strategy
• Transfer of production line
• Transformation: OEM-OBM-ODM
• Self sufficiency in core components
• Huge investment in R & D
• Management structure for effectiveness

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Recommendations
• Should increase production capacity of
magnetron
• Should emphasize on brand building and adopt
good marketing strategies, overseas

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