Galanz Case Study

Case Study

Galanz was originally a down feather prodution company employing only a few people. The company produced down feather products to ship overseas. Due to trade issues and quotas Liang decided to enter the electrical appliance market by making microwave ovens. This helped the company meet export quotas and to be able to receive public funding for the company.

The analysis uncovered in this report deal with how Galanz had to change their operations management as their company grew and how they were able to compete in this competitive market and be extremely successful.

Galanz has been successful because of their ability to use their resources effectively establishing itself as a recognized brand in a domestic market through consistent competitive strategies of cost management. They did not originally have a high advantage in the market because they were lacking the production knowledge they had the advantage of low cost that they were able to work on developing this skill and were able to become successful at producing not only microwaves with imported pieces but eventually they began making their own magnetrons when they were having difficulties getting them from the competition. They also used price wars in their domestic market to increase their profits and to become a better producer of microwaves than their competitors.

The order qualifier and order winner factors of the Galanz company are that they successfully transferred their business from making one type of product to making a different product. They were able to transfer all their resources from the original production into making their new products in the same environment. Galanz was able to focus on a smaller market mainly focusing on China. They made their prices lower than foreign competition and were eventually able to take over the market and become the main supplier of microwave ovens they were even able to eventually begin completely