1. What were the order winners/order qualifiers for Galanz in the microwave oven business during the early stage of its development?
Quality is one of most important factors for order qualifiers because it provided reliability for customers to use them. However, the low-price strategy was the order winner during the early stage of development of Galanz. To win orders, Galanz adopted a low-price strategy. Low product prices which can be afforded by domestic market triggered more demand. With this increased demand, Galanz achieved greater economies of scale, which helped to lower costs and prices further. In addition, it also attracted foreign manufacturers to transfer their production facilities to Galanz. With the cheap price of
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This contrasts with traditional Western operating hours of 40/week and allowed them to increase production scale and reduce production costs relative to many of their competitors. Finally they pursued vertical integration of the supply chain to reduce costs and improve quality, leading to 90% of Galanz 's microwave parts being produced by Galanz itself. Each of these operational strategies support the competitive cost leadership strategy by exploiting economies of scale to generate large-scale production and achieve low-cost efficiency.
5. What are the differences between OEM/ODM versus OBM in terms of production, design, marketing, distribution, and customer service?
Original equipment manufacturers produce a necessary component of another company’s product, often relying on economies of scale to drive down production costs. OEM’s typically don’t provide customer support, instead passing on those responsibilities to their client whom bought the original product. Original design equipment manufacturers on the other hand, produce a product that is eventually rebranded once purchased by another company and can be thought of as “outsourcing”. The main difference between the two is that OEM’s produce a product by their own specifications, while ODM’s produce products by another company’s specifications. ODM’s also aren’t in charge of final distribution, while OEM’s are. Another difference is that unlike OEM’s, ODM’s also
While it is our main goal to be fast, accurate, and friendly we also want to make sure that the quality is there with our products as this will build repeat business for our restaurant.
Apple has several key advantages in how it manages its supply chain operations. First by buying key components from suppliers in advance they ensure the steady supply of key parts. This risk is also countered by signing exclusivity agreements with some suppliers. In addition, these exclusivity agreements give them an advantage over their competitors who sometimes had to wait for key components due to the large demand from Apple. Another key advantage is that Apple maintains a close relationship with suppliers by working with them to update manufacturing processes and technology.
* Giving up on the ODM business means that they lose a less-risky business that can gain them continuous cash flow. Now the growth of the company completely depends on the sales of their own branded mobile devices.
High cost of internal supplies GM’s decline can also be concluded by the failure of cost cut. As sales decline, variable costs, manufacturing costs and material purchases should also be reduced. However, since GM has significant fixed costs, for instance the pensions and healthcare costs, it has been difficult to do costs cut in a successful way. As a result, the total costs of GM remain much higher than the one of its competitors.
MTO companies typically allow consumers to purchase products that are customized to their specifications. MTO strategy only manufactures the end product after getting confirmation from the customers. Unlike mass production where a material is manufactured many times, in MTO production a material is created only once though the production process that might be repeated at a later time. As a result, the consumer waiting time to receive the product increases but it allows more flexibility in customization compared to purchasing from retailers' shelves (Zhang et al., 2012). According to Muda et al. (2009), MTO companies can be classified by the following two types -
b) Original equipment manufacturing (OEM) coatings: formulated to industrial buyer specifications and applied to original equipment during manufacturing. Used for automobiles, trucks transportation equipment, appliances, furniture and fixtures, metal containers and building products and industrial machinery and equipment. Represents 35% of the total industry market.
Being the largest microwave manufacturer in the world, with strong commitment to R&D, expertise in manufacturing, logistics and quality control, and increased brand recognition in the overseas market Galanz has gained the competitive advantages for OBM export business. Galanz’s need continue to increase investments in innovation and branding in order to sustain the competitive advantage in the global markets and ensure that incremental gains are made to ensure profitability
As the price of the products is comparatively low, that will increase the purchasing power of the customer and they will buy in larger quantity and thus the company gains the profit. (Soni, P. (2016))
The upside to using OEM parts is that they are the same parts that were originally in your vehicle; the downside to the OEM parts is that they generally cost more. Generic parts often work just as well and cost you less. Find out why the parts cost less and decide what type of parts you want used in your vehicle.
An OEM (Original Equipment Manufacturer) windshield is often fabricated by the original windshield manufacturer and will be nearly identical to the one that rolled off the assembly line. Though, because car manufacturers often switch glass companies mid-run, there is a chance that your OEM windshield will be made by a different glass company.
The production and manufacture can be up-to-date with the market and offering the best quality of Performance and Size to meet customers’ needs.
In order to make sales and have a successful running company you need to know how to market your products and or ideas to the group of people for whom it is intended. The quality of your product must also be top tier because marketing is only half of the battle. Before hearing Tripp Transou talk I was unsure about how important the quality of the product was. I was under the impression that marketing was number one because that what got people to buy it. However, he allows me to realize that if you want consumers to buy your product more than just once then you must ensure that the quality and consistency of your product is perfect. There must also be attention to detail in every aspect of your company from making sure the facilities are kept clean to the product being properly manufactured, stored, shipped and tested. This attention to detail will translate into more sales and having a more successful and efficiently run company than those who do not seem to care for their consumers. Tripp’s talk allowed me to see how much goes into running a successful business whether it is big or small. His journey of how he came to be the successful businessman he is today inspired me to never always have an open mind and never turn
Galanz was successful because of its low price strategy this was possible because it acquired the production lines from other companies. Galanz increased production (product quality and production scale) through a free production line transfer, assembly technology , part customization, production site improvement, training for Galanz’s operators and staff (from Fillony, Toshiba, Sanyo, Whirlpool, GE, SEB, DeLonghi) and used the excess capacity to produce microwaves under its brand name for the domestic market. When companies like Toshiba and Panasonic refused to offer enough magnetrons to Galanz, Galanz decided to invest in R&D to create their own design for the
Referring to appendix 2, the majority of GRG customers have high value in the use of GRG products. Because of this most customers require high quality, quality testing and control, reliability in delivery and fulfillment, ISO 9000 and ISO 1400 as well as cost efficiencies.
EPD is struggling to face a transformation of business model. They should change their business from product oriented to customer oriented because the key success factor of the component market is not technological advantage anymore. In the instable component market, it is needed to have market-oriented people and built a close communication among teams in order to introduce new product into market quickly. They also don’t have enough marketing staff and their evaluation