Galanz Competitive Essay Sample
Galanz has built extremely its industrial “Threshold” based on its cost advantage.
In China. there is non any field other than the field of microwave-ovens that is featured by a “Highly Concentrated Brand” which even can be deemed as holding entered the “Oligopoly” of the industry: The first corp of Galanz itself holds the market portion of approximately 60 % . the 2nd corp of LG histories for approximately 25 % and the corps ranked 3rd of Panasonic and 4th of Samsung merely approximately 5 % . Because of such a specialness. the microwave-oven industry has its “Cost Barrier” standing advanced of “Technical barrier” . Galanz’s one-year production capacity of 15 million units has built extremely the industrial “Threshold” based on Galanz’s entire cost as its prima advantage.
Guangdong Galanz Enterprise ( Group ) Co. . Ltd. has been renamed officially from its predecessor which was Guangdong Shunde Guizhou Feather Products Factory since June 1992. In 1992. Galanz introduced a production line of Toshiba microwave-ovens. which was the most advanced one so and completed for get downing its production in six months. During the latter 10 old ages. Galanz has progressively developed its graduated table of production with an end product from the first annual capacity of 10. 000 units to o. 6 million units in 1996. In 1997. it surged to about 2 million units and now it has the world’s largest microwave-oven production base whose one-year production capacity reaches 15 million units. Since 1996. Galanz has repeatedly set off “Price Storm” . a big figure of small-scale makers were forced to retreat from the market. Furthermore. go throughing a few old ages. the Korean LG is the lone one staying a 2nd place on the market. which can vie with Galanz. Galanz has become the “King of Microwave-ovens” of China and even the universe. keeping severally the current monopoly of market portions of 60 % of China and 35 % of the planetary market.
Strategic Analysis of the Successful Way of Galanz
1. Galanz’s overall scheme may be analyzed to hold an analysis of its scheme of specialisation. In the growing period. Galanz’s overall scheme aimed at “Focus on One Point” as the nucleus. i. e. . its resources for the original concern sector were transferred in a large-scale to the new chosen undertaking of “Microwave-ovens” through a backdown from the original industry so as to concentrate all resources to run the new “Focus on One Point” by taking the route of professionalism. The of import portion of such scheme of “Focus on One Point” is the constitution of barrier for an entry. Galanz Group’s public presentation in this country is really outstanding. including: First. in the premiss when the same or lower entire cost is remained. new merchandises and proprietary engineerings have been invariably developed. Second. utilizing the entire cost leading in the field as its advantage. quality and low-price merchandises have been introduced to the market to spread out market portion. Third. on the footing of the above conditions. Galanz has utilized its ain technological forces to develop cardinal constituents which have been used in production to further cut down the entire fabrication cost.
Galanz’s scheme of globalisation: It means that Galanz is non merely represented by its debut and integrating of different advanced production equipments and engineerings from other states in the universe. but besides the international market taking at an allotment of resources from the point of position against the planetary market where its merchandises could be introduced by utilizing its ain trade name or OEM. research and development could be conducted internationally through a cooperation between R & A ; D establishments of U. S. and China to develop Galanz-own engineerings and new merchandises. and international endowment of foreign experts and direction forces could be hired to run into the demands of international concern operations.
