Asia Pacific J Manage (2008) 25:667–683 DOI 10.1007/s10490-007-9073-0

A strategic analysis of surging Chinese manufacturers: The case of Galanz
Gloria L. Ge & Daniel Z. Ding

Published online: 10 November 2007 # Springer Science + Business Media, LLC 2007

Abstract Recent years have witnessed the surging of Chinese manufacturers, as China has become the world’s factory floor. This paper presents a case study of one of the most successful manufacturers in China, the Galanz Group, now the world’s largest microwave manufacturer. Based on theories of multinational corporations from emerging economies, the paper examines the process of Galanz’s integration into the global market. The company has developed unique competitive strategies that have made it a great success within China and in overseas markets. The Galanz model suggests strong strategic implications for both Chinese firms and incumbent multinational corporations. Keywords Chinese manufacturers . Strategic analysis . Internationalization . Galanz In the last two decades, China has maintained an average annual growth rate above 7%. China is rising as one of the world’s largest economies and trading powers. As China becomes the world’s manufacturing floor, the competitiveness of Chinese manufacturers and their impacts have emerged as a hot topic. China’s manufacturing output now ranks third in the world only behind the United States and Japan, after overtaking Germany in 2003 (China Daily 2005). Many Chinese manufacturers have grown rapidly in recent years and are becoming increasingly important international competitors. Examples are Lenovo
We highly appreciate the support and assistance that Galanz provided to this study. We thank all the interviewees who shared their thoughts and time with us. We also appreciate the valuable comments made by the editor, Professor John Mathews and two anonymous reviewers on an