Logistics And Supply Chain Of Galanz Microwave Company - Case Study

Order Winners and Order Qualifiers According to Galanz Case Study

Question:

1. What were the order winners/order qualifiers for Galanz in the microwave oven business during the early stage of its development?

2. Rank the importance of Galanz’s operations objectives of cost,quality, flexibility, delivery, service and innovations. How has the importance changed over the years?

In this report, there is the deep study given about the logistics and the supply chain of any organization. According to the given case study, all the answers to the entire question are explained in the detail. Galanz case study is given in this paper. According to the annual report of the Galanz microwave company, a brief discussion will be provided in this report. Galanz is a company for the manufacturing of the microwave which was founded by Liang Qingde in 1978. At the beginning of the company, he launched the microwave oven that was very costly (Li 2013). After that, he implemented some strategies for being the best manufacturer of the electronic appliances in the world. In this report, all the strategies which he implemented at the starting time are discussed in detail (Sodhi and Tang 2013). The importance of the Galanz’s operation and the objectives are also explained in this paper. The benefits and the problems which he faced in starting will be highlighted in this paper according to the deep study about this company. The technology which is used in Galanz to manufacture the microwave oven is discussed here. he technology for improving the manufacturing process and the effects of the technology are given in this paper in a brief discussion.

Orders winner according the Galanz case study was the strategy of Galanz that are used for winning the business from the customers. To sell the goods in less prices was a order winner. When consumers were not aware of the brand so, Galanz started to provide a high quality microwave oven in low prices that are order winners to win the trust of customer’s and to grow the business.

The word order winner was given by Terry Hill, who is the professor in the business school at London. He also gave the term order qualifiers. He referred the study to find the solution to convert the internal operational capabilities into the criteria which can lead the competitive advantages and the microwave oven sell can be increased and the company may lead to the market success (Reid et al 2016).

Order winner is the competitive characteristics which help to give the fact to the customer so that customer itself shows its eagerness to buy this company’s goods and services (Khan and Li 2015). To provide good in low prices is the order winners that are used by Galanz.

Order qualifiers are also the competitive characteristics that this firm can compete with the other competitors and must be a viable competitor in the market so that no one can compete for this easily (Found and Harrison 2012). To compete the other competitors, Galanz started various strategies that are order qualifiers. Galanz provide the continuous improved microwave oven that is the order qualifiers. To provide the continuous improvement is the order qualifier that is used by Galanz to expand the business. Galanz started to provide high quality and the on time delivery that are the best order qualifiers.

Cost: Production cost will be reduced by Galanz so that the microwave can provide at low cost to the customers

Objectives of Galanz's Operation

Quality:  the quality of the microwave ovens provided y Galanz is high

Flexibility:  There is flexibility due to high qua;ity and less cost provided by galanz.

Delivery Service : Galanz improved the inventory control and enhance the quality of the product and the management also improved by Galanz to provide the best service..

Innovations: Galanz started to invest more on research and development to improve the microwave ovens.

Galanz is the company which is known for the continuously launching the new products in the market at the less cost so ost is ranking as the first and the quality provided by Galanz was high so the quality is ranked as second and the flexibility ranked as third as there is a kot of flexibility and the delivery and innovation ranked as 4^th..  The objectives of operation of Galanz are very important for increasing the market value and for the sell of the microwave ovens. The less cost of the products is important for the company for the quick turnover. It provides the less profit but the high turnover every year (Marković et al 2016).Low cost of the goods and the high features or technology provides a total flexible microwave oven to the customers. The cost was low and the delivery of OEM microwave was at home delivery without any delay. The services which are provided by Galanz are very good and provided at low cost.

The people become aware of the brands and the demands of the branded microwave became increase. Galanz started to invest more in R & D so it reduces the total cost of the manufacturing cost. An entrance barrier was set up by Galanz that is known as key factor or innovation. The new functions for the microwave developed and the consumption environment for its global customers was improved. There are very positive changes that have made in the importance. The importance of Galanz microwave has increased with the time among the customers as it provides the most flexible microwave ovens to the customers (Sull et al 2013).

Specifications	Importance
Awareness	People become aware of the brands of microwave oven.
Investment on R & D	Galanz started to invest the more amount on research and development
Production	The sell of the microwave ovens increased.
Flexibility	The total turnover also increased due to the high quality microwave ovens at low prices.

A high amount of investment has been made in Galanz for the adoption of key technology and for the development of the technology for the best production of the microwave oven. Galanz started to undergo the transference from the production to high production technology and from the manufacturing to the creativity (Sodhi and Tang 2013). The various technologies were adopted by Galanz at the starting point of time to increase the production at the least cost in fewer spans of time. As the result, Galanz is the largest electronic appliances provider company in the world.

Galanz (The Company) has made the achievement over 760 for the microwave oven for including the spherical microwave technology, gas leakage prevention technology and various other technologies related to the microwave oven. Great success is achieved by Galanz by using all the technologies in this company (Huang et al 2013).

In 1980, the competition and demand of microwave were very small in China and the market was not so good at all. Only some famous brands were in the market such as Samsung, LG and Toshiba. There was very less competition in the market so these all famous brands do not have any intention to expand their business. In 1990’s the founder of Galanz realized that they need to import the technology from the oversea. So they had purchased blueprints for the production of the oven with the investment of 300,000$ from Toshiba. He held a partnership with Toshiba and worked for Toshiba. After that, he held the world leader in the production of microwave oven production equipment technology. The role of the technology played very positively. After purchasing the microwave oven production blue print, various famous companies started to purchase this product. The management and the founder of Galanz also started to implement various strategies and they started to search for the best engineers for the setup of a manufacturing company (Huang et al 2013). Then Liang Qingde found the engineers who had great knowledge to the microwave oven technologies. They made the best quality microwave oven which proved very helpful to increase the productivity of the company and the company met with success.

Importance of Galanz's Microwave

In 1993, that was the first consignment of the 10000 microwave oven that was produced under observation of the technical engineers. On the technical side, to invest in the technology for the microwave oven was too risky in 1950’s. But some companies started the production of the magnetron tube and also the supply of power in the subsequent decade. But while Galanz purchased the blueprints from Toshiba, it was really very helpful for the success of the company which is established by Galanz.

Galanz started produce the best quality of microwave at less cost under the supervision of senior employees of the Galanz. These twoere the competitive strategies of Galanz. Galanz has started its business as a manufacturer of the small feature products that were owned by Shunde Township. It has produced approximately 50 % of global output before its involvement into the world class manufacturer. Then the management hired the best team of the qualified engineers and then they started to work in close proximity with them (Kumar and Steenkamp 2013). Then alanz group made the finely finished microwave oven in less cost which included the best features some of the consumers were not aware of the brands. So, the awareness was created among people by providing the good quality of the microwave oven at less prices. These were the competition strategies that are used by Galanz group to compete with the other microwave companies.

There are some operation strategies of Galanz given below:

There was the 24* 7 working facility. The founder of the Galanz divided the working hour into three shifts so that all the employees would be able to work without pressure according to their shift timing. It was very helpful for the employees of the company to work on the product 24* 7 without being tired. The founder implements such strategies in his company as the company started to grow day by day. One of the other strategies of Galanz is to invest the 5 % of total turnover every year for the improvement of the technical skills. An advancement of the technology can be made to improve the quality of the microwave oven.

The operational strategies were implemented to make the best quality microwave at very pocket-friendly prices of the consumers. An economic of the scale also gained with a large number of the available labour to produce the product at the budget-friendly prices of the consumers. OEM production was also a strategy of Galanz to change from OEM production to the oversea markets (Lopez and Fornes 2015). This strategy was used by Galanz for being the international the best manufacturer of the microwave oven. Collaboration with the multi-national companies was also a good operational strategy which is carried out in Galanz. The production of the ovens for the national as well as domestic market is also the strategy for increasing the sell and turnover of the company. To provide the microwave at less cost with new technologies is the best operation strategy of Galanz to compete its competitors.

Adoption of Technology at Galanz

Galanz is a 24 *7 working hour organization. For the high production,  Galanz hired a large number of labours that was very important for increasing the quality of production. It contributed a lot increasing the production line at the low prices (Tao et al 2013.). They started to manufacture the products at less cost. There were numbers of labours that really helped Galanz to improve its economic value. The founder of this company gained a high economic value by producing goods at low price with all the features. Then, They competed with their competitors easily. So, the operational strategy supports the competitive strategy. If the given input is correcct then outcome will be also good. It the given input is correct then the result will be good. When Galanz group launched this kind of microwave, it became the point of interest of the consumers and the consumers switched to Galanz microwave oven.

It proved very helpful for Galanz to compete with their competitors. And this Galanz group of company started grows towards success. The competitive strategies are rational to the operation strategies. The environment of a work-place plays a vital role in the success of the company.

	OEM	ODM	OBM
Distribution and customer services	Original equipment manufacturer provides on time delivery and the best branded microwave ovens.	Original design manufacturer is a company that provides the branded microwave ovens for the other company.	It is the company that sells the products made by other company.
Production	The production is high	Production is less than OEM but more than OBM	Production is less
Design	Design the products according to own specifications	Original design	Designed the products according to the requirement.
Marketing	The sell of OEM is high.	High sale but less than OEM	The sell o OBM is low

OEM is the original equipment manufacturer for the western brand. Galan is the company, in which production for OEM has started to make that brand multi –national. Galanz is the Chinese company which was pioneered for the original equipment manufacture of microwave oven (Zhang 2015). It is the process which is helpful for production at lower labour cost in China. By means it increases the high economy of Galan by the production of the microwave oven, air conditioner and some other electronic appliances.

While OBM was the first technical support to help Galanz for the setting-up the research and development centres. To showcase the branded microwaves of Galanz, this ODM microwave oven provided support to set p the research & development centres.

The ratio of OEM and OBM microwave increased from 1:9 to 3:7 from 1997 to 2003. OBM microwave is the least cost good quality microwave than the OEM microwave ovens. OBM brand was strong competitor to the OEM microwave ovens. OEM was the less features microwave oven than the OBM (Denison et al 2012).

In OEM microwave oven purchasing, customers placed the order for the oven and paid the cash on delivery. This situation increases the risk of the poor forecasting and panning which can a customer lead but in the OBM, there are chances of the same risk for the company.

OBM microwaves are inspected as the small demands of a variety of products but the sale of OEM was good due to the high demand.A strategic partnership withal-Mart and K-Mart was confined then to increase the production of the productivity. Then the production of the microwave ovens improved. By changing some strategies after the partnership with these multinational companies, the production of Galanz has increased (Wei et al 2014).

Conclusion

In this paper, Galanz company case study is considered for explaining the logistic and supply chain of any organization. In short, it can be declared that Galanz is the world’s largest company which provides the best electronic appliances. But in this case study, a microwave oven is considered as the product of the Galanz. In China, the business of the microwave was on the top when the founder of Galanz researched on the market. Then, he started his own firm.  All the issues and the facts are discussed in this report according to the case study. The journey of success of Galanz from the starting to end point is described in this paper according to the annual report of the company. In short, it can be said that there were various technologies and the strategies used for the improvement of the microwave oven quality. A clear and easy strategy used by the founder of Galanz proved helpful for the success of Galanz.

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