GALANZ CASE STUDY

ANALYSIS

Mohit Choraria
EPGP-13C-050
JOURNEY
 CHALLENGES FACED BY GALANZ
 Inaccurate Sales Forecast – leading to overstocking.

 Inefficient production planning.

 Low brand recognition in overseas markets.

 Antitrust (Anti-monopoly) Lawsuits.

 Developing International Brand Value.

 Prioritization of Business Model.

 Need to increase Production capacity to meet increasing demands.

 Difficulty in handling cultural differences in overseas market;

 CURRENT SCENARIO
 Galanz gained a leading position in World with more than 50 per cent of the global market share in
microwave ovens in 2007.

 Galanz follows a centralized decision marking structure, entire organization is under Liang Senior,
Vice Chairman and CEO of GALANZ, later transferred to Liang Junior.

 Has grown multifolds from one production line with 300-500 units/day to 24 production lines and
nearly 50,000 units/day and operating 24 hours a days & 365 days in a year.

 Galanz switch its business direction from “Made in China” to “Created in China”.

 Galanz operated in OBM (Original Brand Manufacturer) mode in the Chinese market and a
combination of the OEM and ODM (Original Design Manufacturer) modes in the overseas market.
CURRENT SITUATION
HANDLING
OPERATIONAL STRUCTURE
SWOT ANALYSIS
 SOLUTIONS
 Product innovation and process improvement – Technological leader strategy - high expenditure – focus on only a few
areas - OBM differentiation – Strategic Technological alliances and technological following OEM low cost.

 Hire high skilled employees and because the company wants to be international, need to recruit managers from the
target markets.

 Balance the operational cost and investment and maintain the financial system – prioritize on capital allocation.

 New strategy must use automated information flow. Communication among the organization levels must be quick and
understandable.

 Improve B2C business –Market research and development of service.

OPERATIONAL STRATEGY SUGGESTIONS
FUTURE STRATEGY