Case Analysis – Akshat Das

– EPGP-13C-006
 Current
Case Summary
Scenario

Overview –
Situation Current
Galanz Case Awareness Practices
Analysis
Future
Proposed Outcome with
solution proposed
solution
 They are the largest microwave oven manufacturer in the world

Their concept was being cost efficient with maximum utilization

of capacity and process improvement

They had combined OEM, OBM and ODM to scale up and achieve
their economy of scale

Case Summary Cost arbitrage (labor and assets)

Investment in R & D

Transfer of production lines with 24 hours operation time

Collaboration with K-Mart and Walmart

 Low brand
Anti – Monopoly
awareness in
Lawsuit
overseas market

Conflicting interest Centralized

of OBM and OEM decision-making
setups process

Current Scenario
Prioritization of
Inefficient
business models
production planning
(OBM, ODM & OEM)

After Sales Issues

Situation Awareness
Their main objective was how to be more cost effective, they already had land and labor in abundance

Meeting the standards of product (quality)

They enhanced their production capacity by transferring the production to their factory, working 24 hrs in 3 shifts and
7 working days
They were the market leader in their segment

Since their supplier refused to provide them magnetron, they invested their resource in capacity building and being
self sufficient
Outsourcing of the magnetron supply to the Japanese supplier

They were the market leader in China. They deployed price war as a strategy to drive the competition out of market
 Cost leadership strategy

Complete utilization of resources

Deployment of price war to dominate the domestic market

Increasing the production and reduction in cost

Current Collaborating with the universities for better R & D

Practices Strategic partnership with MNC (Walmart and K - Mart)

Diversification from OEM to ODM to OBM

Presence in international market as OEM

No brand presence internationally

SWOT Strength
• Cost leadership mass
Weakness
• No brand recognition in
Analysis production OBM Market
• Innovating and Investing in • No sales setup in OBM
R&D • Mass production with less
customization
• Centralized organization
structure
SWOT Threat
• International brands have
Opportunity
• Expanding the product line
Analysis better recognition • Improving the after-sale
• Have great after sale service service thus improving
and customer support customer satisfaction
service
Proposed Solution

No immediate or apparent Execution of a joint venture

Continue as a major OEM –
changes to the cost to enhance the production
this setup is the cash cow
leadership strategy. Relook facilities to be more in line
for the company
at their dumping strategy with OBM market

Either JV or Acquisition this Decentralizing their

This will also help them to will enhance the company organizational structure
make products more to improve their sales and making each manager
customizable network and customer accountable for their part
satisfaction as well in business
Future Outcome
• With the deployed strategies they would be able to turn
the tide in their favor.
• Immediate transformation from OEM to OBM should
not be the focus
• Thoughtful expansion of their production line
• With the focus back on their OEM and ODM business,
they will have the time to strengthen their sales
network and service network.
• Transition to OBM would be easier either on their own
or through JV or acquisition