The operation objectives are based on its competitive advantage, customers’ needs, business environment and opportunity. Galanz’s most important objective was cost as it only had abundant supply of land and labor. Since it used cost leadership, it helped to lead the market by eliminating its competitors during the early stages of business. It helped not only to capture Chinese domestic market but also helped to attract foreign market as well.
Galanz expanded their business in overseas market through OEM so they prioritized delivery as they had to provide various equipments and components efficiently. They also focused on quality because in order to capture foreign market and develop a long term relation with foreign companies, quality was very important.
As they expanded their business through OEM, OBM and ODM, it further facilitated them to operate with more ease in the market. They didn’t have to rely on other companies for various designs and components.
A micro oven’s major component was magnetron so they had to rely on it through its suppliers. The suppliers decided to reduce the supply of magnetron which prompted Galanz to initiate a major investment in magnetron R&D in 1997. Then they transformed into ODM which was very successful. They focused in innovation so as to remain competitive not only in microwave oven but also in other different components that they supplied to other companies.
The importance of Galanz’s operation objectives have changed over the years in the following ways:
During 1990’s, early stages of Galanz’s business, they prioritized on cost leadership as it was the only way they could capture the market. During that period, microwave oven was very expensive as it was only targeted to high end market.