Galanz Operational Strategy

Galanz operational strategy is based on the continuous challenges of its owner Mr Liang, who is an ambitious Chinese entrepreneur who wants above all to lead the microwave oven market.

Starting from his first strategic decision, regarding the entrance in the microwave oven market, to the others in order to develop it overseas, he is able to understand correctly the market giving the right solution in the right moment.

Liang is a smart entrepreneur who has a strategic vision of the business relationship between his company and its suppliers. He uses this particular capability to import knowledge in its company, through different tactics like the one used with the transformer supplier.

From this point of view, his strategy is focused on long term investment which are quit poor in the short term, but they are adding value to the company for the future development. Indeed he has the clear aim to increase dramatically the company capacity to produce ovens and he recognises that to do that the company has to be completely independent from the suppliers.

The reduction of the costs based on the large scale of production, is another element which gives evidence of the consistency between the corporate strategy and every related operation. Reducing the costs of the products gives to the company a huge competitive advantage.

Coexistence of OEM/ODM with OBM in the Overseas Market

The decision to improve the OBM in the overseas market is challenging and risky, because it changes the corporate operations which now need different approaches, knowledgement and human resources. Probably split the company in two branches: one for the OEM/ODM and one for OBM. The company should have different strategies for the two:

1. For OEM/ODM they should continue the same general strategy of cutting the costs in order to keep the price of their product very low, with the aim to maintain their clients and add new ones.

2. For