1.Galanz has been able to become a successful business because it new that staying on top of innovation was important to the success of any company. Products change as times change and if companies do not understand the innovation of new products for their customers they will not increase their sales.
Liang made a lot of the right decisions early on with this company which helped it become successful. He was able to eliminate the competition in China by using cheap labor and low price strategy. Liang also knew his market, he knew more than the competitors and understood that microwave ovens were something that China needed and wanted, yet they couldn’t afford the name brands there were out there, he knew selling them at low cost would work. He also found out later on that manufacturing some of the parts of the microwave oven within the company instead of outsourcing all of the parts was going to help the company grow.
2. Order qualifier factors for this company were the cost of the product as well as the quality of the product. His products were known to be low cost, yet a good quality.
Order winners that allowed Galanz to win the orders from custoomers in China were the low cost of the microwave oven. Galanz knew that most people in China could not afford the prices of the microwave ovens that were already out, lowering the cost allowed him to reach that market.
3. Galanz should not evolve from being an OEM to an OBM. He should continue its OEM business. These businesses help Galanz to get a range of economies and they do not require Galanz to invest in brand building. He can then have a higher profit and can price the microwave ovens at a lower price.
4. Galanz should continue to expand its capacity through outsourcing arrangements. The company is becoming large and the demand for the units is increasing. Outsourcing is allowing Galanz to expand and meet the needs of its customers. Galanz did decide to manufacturer some of the parts they were...