Galanz china

3. The success of technology to Galanz

Technology has helped and made it ways in turning Galanz into a high innovative brand today from manufacturing, OEM, ODM to OBM. Galanz are able to achieve cost-effective production in producing lower cost of production goods making it one of the highlights of the Galanz main strength.. The technology has helped to sustain and dominate the domestic market by reducing substantial prices by 30-40 percent from the original market price. This practice allowed them to succeed in achieving incredible margin in dominating the domestic market and oversea market.

Thus, they are able to capture the economic of scale for domestic market at 50 percent and also overseas. Galanz shifted its business model from a “world factory” to “world brand” in producing OEM and OBM product by offering and provide consumer more options in choosing Galanz product or having to specification/customizing the product based on their taste. Thus, Galanz have carried on becoming an innovative and diversify company.

The increase rate of technology usage, Galanz are able to speed and increase larger volume orders with time delivery schedule in the manufacturing which are able to “reduce the production efficiencies with the processors and also as to reduce the production costs expenses and allowing them to be more competitive among their rival counterparts”(Ge, G.L. & Ding, D.Z. Asia Pac J Manage (2008) 25: 667) Galanz are able to expand OEM and OBM product “inexpensively by avoiding cost associated with promoting its brand and establishing a distribution network oversea” (Wilson, I. 2017) . Thus, Galanz have expansion in the U.S. and South Korea for R&D efforts and researches centers.

Ge, G. and Ding, D. (2007). A strategic analysis of surging Chinese manufacturers: The case of Galanz. Asia Pacific Journal of Management, 25(4), pp.667-683.

http://link.springer.com.ucd.idm.oclc.org/article/10.1007%2Fs10490-007-9073-0

Wilson, I. (2017). 143 THE OEM - OBM DEBATE: FACTORS INFLUENCING CHIN ESE FIRMS' BRANDING DECISIONS IN THEIR INTERNATIONALISATION PROCESS. [online] globeco.ro. Available at: http://www.globeco.ro/wp-content/uploads/vol/split/vol_1_no_2/geo_2013_vol1_no2_art_016.pdf [Accessed 16 Mar. 2017].

http://www.globeco.ro/wp-content/uploads/vol/split/vol_1_no_2/geo_2013_vol1_no2_art_016.pdf