Post these responses directly in your private student journal. Your assignment is due Wednesday, April 10th. Then a forum will open for each of these assignment questions. Please write two-to-three paragraphs per question.
1. What are Galanz's competitive and operations strategies?
Considering the expertise of international players like Panasonic and Toshiba, Galanz didn't really have a competitive advantage with respect to technology. Cost arbitrage (of land and labor) was the chief competitive strategy employed by Galanz to capture the Chinese microwave market. Galanz conjured up mutually beneficial deals with its clients to achieve rapid expansion of production capacity by arranging for production line transfers, process and
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Thus, after the superlative domestic success, Galanz focused on building a world brand by maintaining its low cost, abundant supply and stressed on important aspects such as customer relation management and after sales support.
2. How does Galanz's operations strategy support its competitive strategy?
Initially as a market entrant, Galanz focused on a low cost strategy to gain leverage in the domestic market. This strategy was supported by an abundance of cheap land and labor. The expensive microwaves produced by players like Toshiba and LG were unaffordable for majority of the Chinese population and hence, Galanz became popular right from its inception. The rapidly increasing demand, which rose to almost 25 million units in 2003, for these low-cost microwaves prompted Galanz to expand its production capabilities. Galanz, facing shortage in production, decided to outsource magnetron production to Japan for the production deficit that it faced. Furthermore, deals with customers like Fillony to transfer entire production lines made sure that the ever growing demand for the ovens was met successfully. The perennial working shifts for the production team ensured that production scale and costs of Galanz was unmatched anywhere in the entire market.
Galanz's strategy of a price war worked in its favor as competitors like LG and Panasonic went out of business in the
LCD & Plasma Component Makers Raise their Competitiveness (2010) stated that in the technology industry, foreign brands, such as Samsung and LG, still occupy a strong position. Consumers demand higher quality, they pursue cheap products and high quality and enjoyment. In the supply condition, the more competitive the product is, its features are more attractive. Between foreign and domestic prices of brand, new products style and maintenances servers, these terms become a fierce competition for the suppliers.
Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO). In addition, its large networks also help in
Being the largest microwave manufacturer in the world, with strong commitment to R&D, expertise in manufacturing, logistics and quality control, and increased brand recognition in the overseas market Galanz has gained the competitive advantages for OBM export business. Galanz’s need continue to increase investments in innovation and branding in order to sustain the competitive advantage in the global markets and ensure that incremental gains are made to ensure profitability
Samsung, for instance, uses stronger business and corporate-level strategies and thus a competitive advantage regarding differentiation, quality, and price. However, Magnavox beats these other companies by being the first in innovating unimaginable products in addition to improving the existing ones. Both LG and Samsung beat competition with their speed of execution for they respond quickly to what competition is offering in the market. These companies differ from Magnavox by their ability to bringing their products globally little time lag, use savvy marketing to showcase their brands, and establish manufacturing plants in different
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).
The first alternative option, requiring the least innovation, would allow GE to save money without extensive research and development. However, this would create a very small emotional connection with the customer as it would only be another new machine or satisfy his or her banking account. Another potential risk is the possibility of having a different company paving the way with new kitchen appliance technologies. The easiest way of getting into someone’s mind is to be first. GE has always been the leader and needs to heavily compete in the race for technological advances and features.
An obvious development in the retailing market of household appliances in China is the growing oligopoly of Suning Appliance
As major home appliance industry became increasingly global it became difficult for global and domestic major home appliance companies to survive independently in the competitive environment.
Galanz was successful because of its low price strategy this was possible because it acquired the production lines from other companies. Galanz increased production (product quality and production scale) through a free production line transfer, assembly technology , part customization, production site improvement, training for Galanz’s operators and staff (from Fillony, Toshiba, Sanyo, Whirlpool, GE, SEB, DeLonghi) and used the excess capacity to produce microwaves under its brand name for the domestic market. When companies like Toshiba and Panasonic refused to offer enough magnetrons to Galanz, Galanz decided to invest in R&D to create their own design for the
In 2000, Gome Electrical Appliances was one of the biggest home appliances retail chain in China with an annual turnover of RMB 2.6 billion and 21 retail outlets spread across Beijing, Tianjin, Shanghai, Chengdu and Chongqing. It was the market leader in color television market and color television accounted for 60-70% of Gome’s turnover in 1999 and 70-80% of those were supplied by domestic brands. The key marketing problems faced by Gome in 2000 are enumerated below:
Such advancement helped them to lower the cost of manpower and overhead. They are controlling manufacturing in-house which also helps to maintain relationship of them between R&D sections and production. In recent days, they tend to have mass number of people employed which bounds the company to outsource from other companies. This reduces the cost of training employees if the plant was shifted overseas. Their products are restructured and a well structured continual communication has been established by them in order to check the quality standards of their
Could be a aggregation that has been steady growing throughout the accomplished decade. The followingreport can recommendation samsung advance the advance that has been enjoyed within the past, with a strongemphasis on the advance of the all client consumer goods and variable divisions. By allegory customersand what they require, ways will be devised on however samsung will access their allotment of themarket. What is more, by comparison samsungs strengths and weaknesses thereto of thecompetition, opportunities will be articulary and capitalised on.samsung entered into indian bazaar with its technologically avant-garde household appliances. Butwhen it entered in associate indian market, it had to face actual boxlike antagonism and still it‘s adverse toughcompetition, however currently it's
dominant American presence and expend customer base of new market segment in European by this acquisition. This move was one of the main factors that made Li & Fung able
With success in the higher-end manufacturing and sales of premium TVs in China; SCH can establish themselves as high-end producers around the world
Haier business strategy was to enter niche markets, where they could compete with industry giants. Competing with top global international players like Samsung and LG in a number of segments, as well as with Whirlpool and Electrolux specifically in white goods, one of the main problems for Haier was how to clearly show its commitment to quality products and differentiate itself from them. Haier did not want to fall into a trap of general customers’ perception over the Chinese products as of being low quality. Another challenge was to compete with multiple brands producer (i.e Kelon), while Haier was focusing on genuine