Galanz

Galanz is a Chinese company founded in 1978 by Liang Senior that started business in feather products
industry. Changes in the political and economic system in China motivated Liang Senior to make a shift in its
operating industry and in 1992 Galanz entered the small electric appliances market by having the first
microwave oven produced. The company operated simultaneously an OMB domestic/OEM/ODM type of
business and later evolved cumulatively to an OBM overseas model trying to create a brand of its own. It
reached a very mature stage by manufacturing almost 90% of all the parts composing the product and selling in
both the regional Asian market and overseas.

We are going to start by understanding the company’s evolution from 1991 onwards and the conditions that
led to the situation the company is facing. Moreover, we used the framework taught in the POM course and it
will be our base of study for all the conclusions taken in this assignment.

Order winners/qualifiers

Order Winners Order Qualifiers

Quality Cost/Price
 Performance  Price war (“price cutting mechanism”)
 Reliability
 Conformance
Dependability Speed/Time
 Quantity  Galanz could fulfill order quicker by
 Delivery time operating 3 shifts per day compared with
many western companies

Let’s now see the evolution over the years of operations objectives:
1-most important … 7-less important.

Operations 1991 1997 2000 2003

objetives/Years
Summary highlighting Started microwave Started developing Succeed in designing All OBM
each year business by buying own magnetron. and developing its microwaves used
blueprints from Toshiba OEM overseas own magnetron. self-developed
business was in place Operated ODM and magnetrons. Brand
OEM received increased
recognition
Cost 1 1 1 1
Quality 4 3 2 2
Flexibility 6 7 6 5
Innovation 7 6 5 4
Speed 3 5 7 7
Dependability 2 2 4 6
Image 5 4 3 3

Technology
First of all, Galanz as we know it from 1991 onwards is a technology company from inception just by the fact
that it is manufacturing microwaves. However, at the beginning it was mostly buying components and
assembling them in their production plants. It was only by the year 2000 that Galanz started having a major
1
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