September 19, 2011
TABLE OF CONTENT
ORDER QUALIFYING FACTORS 4
ORDER WINNING FACTORS 4
PRIORITISED VOB & VOC OF GALANZ: 5
THE ROLE OF TECHNOLOGY 6
COMPETITIVE AND OPERATION STRATEGIES 6
DIFFERENCES BETWEEN OEM/ODM AND OBM 7
GALANZ’S STRATEGY OF INTRODUCING OBM IN INTERNATIONAL MARKET 8
SUGGESTIONS FOR MR. LIANG TO LEAD THE COMPANY TO GREAT SUCCESS 9
ORDER QUALIFYING FACTORS
✓ Familiarity with Chinese market
In 1991, Liang Senior analysed the Chinese consumer market for a year and sensed that the rapid growth of the …show more content…
Galanz could excel in developing their own product and release it under their brand name by using the acquired production lines and the R&D that allowed them to manufacture products with extra features that were not available to the customers before Galanz.
COMPETITIVE AND OPERATION STRATEGIES
✓ Competitive strategy:
• Low cost production: Galanz started its low cost competitive strategy from the very beginning of its microwave oven production development by repeatedly implementing price cutting cycles and production capacity expansion, in which it managed to make full use of the low local labour and land costs and fully utilized the production facilities and available resources.
✓ Operation strategy:
• Transfer of production line through OEM agreements: Galanz was successful at using this tactic to escalate its production capacity through a free production line transfer as well as necessary operation training from its customers. It also gained the right to use the excess capacity of production lines for its own products after satisfying the customers’ production quota. Moreover, Galanz used the same tactic to attract component suppliers setting up component production facilities for them.
• Full capacity operation: Galanz fully utilized its production facilities and labour