Galanz Case Analysis

Questions for Galanz case

1. What were the order winners/qualifiers in the microwave oven business during the early stage of its development?
2. What are Galanz’s competitive and operations strategy, and how does its operations strategy support its competitive strategy?
3. What are the differences between OEM/ODM versus OBM in terms of production, design, marketing, distribution and customer service?
4. What should Mr. Liang do to lead the company to greater success? Should the company change its overall cost leadership strategy?

Directions for case analysis

1. Total length should be between 4-6 pages (11-12 pt size, Times New Roman Font, 1.5 line spacing) with margins on both sides. Annexures, exhibits are not included in the above page limit.
2. You may have a short introductory paragraph or two which briefly presents the background of the case. Note however that the case analysis is not about summarizing the case facts. The reviewer has read the case and is aware of case
   details.
3. Then define the problem/issue in the case and lay out the alternatives i.e., the possible options for the organization. This requires thinking.
4. Next is the analysis of the case facts. This is the meat of your submission.
   Wherever possible make use of data to throw light on an issue or bolster your point.
   Analysis of numeric data and eye for detail is critical.
5. Finally, come up with your recommendations/action plan. Your recommendations must flow from your analysis. Avoid generalizations in your recommendations such as give the best quality product at the best price.
   Pl. proof read your submission for typos and sentence structure. Remember how you say is as important as what you say!

SAMPLE SOLUTION

Galanz can be described as a company manufacturing microwaves and it is located in Shunde, China. It started as a manufacturer of down feather products by Liang Senior who critically analyzed the microwave business in China. However, the reduction in the Chinese exporting quotas and a general reduction in profits, the business was changed and invested in
developing the microwave business for the Chinese market. After transitioning to a world- class manufacturer of microwaves, the company took advantage of the export quotas as it was owned jointly by the Foreign Trade Department of Guangdong in China. Other opportunities that the entrepreneur relied on include availability of cheap labor, low competition and the unaffordability of microwaves. Key strategies used to make the business flourish included convincing other manufacturers outside China to change their production lines to Galanz as well as use excess of the capacity making Galanz to be regarded….