Operations Strategy at Galanz Group

Galanz Group had its beginning as a manufacturer of down feather products owned by Shunde Township, before transforming into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. Using different competitive and operational strategies, Galanz was able to achieve tremendous growth to become the unchallenged "King of Microwave Oven" in China and even in the world.

1- What were the order winners/qualifiers for Galanz in the microwave oven business during the stage of its development?

The terms "order winners" and "order qualifiers" were coined by Terry Hill, professor at the London Business School, and refer to the process of how internal operational capabilities are converted to criteria that may lead to competitive advantage and market success.

« Order qualifiers are those competitive characteristics that a firm must exhibit to be a viable competitor in the market place.

Orders winners are those competitive characteristics that cause a firm's customers to choose that firm's goods and services over those of its competitors. »

In the first stage, Galanz transferred all its resources of its original business to its new project "microwave oven", retreated from its original business, concentrated all its resources on this new point.

It had to import the associated technology and equipement from overseas and searched for technical expertise to overcome the business challenges. Indeed the evolution of consumption patterns of China , the rise of Chinese economy and the market potential are a real opportunity that Liang was quickly realized. Given that the microwave ovens prices proposed were high, Galanz decided to make its place in this market based on a strategy of lower prices in order to popularize the product and make it more accessible by producing the microwave ovens at lower prices and thereby expand the customer portfolio and seize the immense opportunity presented by the Chinese market.

In this case, the order-winner focus on a clear competitive strategy based on cost leadership. For this,

Galanz designed and implemented operations system