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Case Study: Case Basically For Query Answer

M. Areeb Shahid's case study analyzes the operational strategies of Galanz, a Chinese appliance manufacturer. [1] Galanz was able to gain over 50% of the Chinese microwave market through economies of scale with cheap labor and land costs, allowing production at high volumes with low costs. [2] Galanz operated as an OEM and OBM, allowing investment only in production without needing overseas distribution or customer service initially. [3] However, as an OBM dealing directly with consumers, Galanz would have had to invest in branding, customer service, marketing and distribution networks internationally. [4] Galanz gained scale through 50% domestic market share with limited product variety, and outsourced magnet

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38 views

Case Study: Case Basically For Query Answer

M. Areeb Shahid's case study analyzes the operational strategies of Galanz, a Chinese appliance manufacturer. [1] Galanz was able to gain over 50% of the Chinese microwave market through economies of scale with cheap labor and land costs, allowing production at high volumes with low costs. [2] Galanz operated as an OEM and OBM, allowing investment only in production without needing overseas distribution or customer service initially. [3] However, as an OBM dealing directly with consumers, Galanz would have had to invest in branding, customer service, marketing and distribution networks internationally. [4] Galanz gained scale through 50% domestic market share with limited product variety, and outsourced magnet

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areeb
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Case study

M. Areeb Shahid (Deaf)


F2016054059
Section A
Submitted to: Ma’am Maimoona waseem

Case basically for query answer


1- Their production line could run faster and efficient while producing large quantities to
keep costs low and increase profit margins. Contributing issues in doing economies
scale were very cheap labor costs, low land cost, another from this interesting
approach employed by the assembly link transfer, within which an allowable is to
additional works of their own success. Galanz will have been a successful integration
of their building line, this can be your creating the success merchandise. it very
difficult for new ones to enter the market giving Galanz over 50% of market shares.
which has consumed official to drive remote opponents out of the Chinese microwave
marketplace.
2- An order qualifier is a normal of your product or service that's necessary in demand
for the product and service it to even could be considered by a shopping. An order
winner is an individual in which will win the offer or customer's purchase. Then,
firms must be deliver the qualifiers thus as to get into or stay during in a market.
3- Galanz OEM and OBM business allowed them to invest mostly in their production
operations without having to invest in overseas distribution and customer service.
Working as OEM to major brands marketing strategies to end consumers were not
needed because the product was being a sold under the customer brand. Being an
OBM Galanz would have to invest and transfer resources to not only production but
also forecasting and design planning, customer service marketing and distribution
networks. they would have to spend capital in brand recognition and after
sale services to gain international market share. when dealing final consumers
directly. Sales and forecasting would also require investment to ensure that demand
would be met without excess inventory.
4- The company’s operational strategy was to gain an economies of scale producing
domestic market share 50% in high volumes with a very little product variety or
variation. During that time microwaves were all imported and sold at relatively high
price. Manager should have to continue expand its production capacity of magnetron
through outsourcing arrangement because that they are able to save their costs lesser
in the making while operating in their domestic market. This will help the company
now extended run to increase capabilities over its production process. The company
was able to produce only 25 million unit. Demand was 25 million unit in 2001.
Galanz Operation strategy found itself outsourcing part of the magnetron production
to each other companies. The operation strategy problem was solved by the
outsourcing with the Japanese company.

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