Q5: What should Mr. Liang do to lead his company to greater success? Should the company change its overall cost leadership strategy? How should the company set priorities and utilize its resources and capitalize to gain competitive advantages in the market place?
Having established itself as a major player in the global market, Galanz now has more resources and expertise to probe even further in the international level, in order to lead the company to greater success. At this stage, Galanz could possibly execute a Joint Venture agreement or even venture into wholly-owned subsidiary types of international expansion to reap even greater profit.
The company may not grow rapidly in the coming years if it stays as being an OEM exporter. While its OEM partners received global recognition. Galanz as a brand remained somewhat unfamiliar outside of China market. Galanz needs to further market its brand globally in order to grow further.
One possible solution is to setup a link Joint venture with another house appliances manufacturer. The best option is forming a link Joint venture with GE. The terms of the Joint venture can be structured such that Galanz will manufacture the products while GE will utilize its existing distribution network t.....[read full text]
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The huge success of the first price war had convinced the executives at Galanz that a deliberate price war strategy was a viable strategy, not only in the short term, but also in the long-run.
Galanz may concentrate on a certain part in the value chain and form strategic alliance to do sales, production, R&D and market together. The first beefit is the cost, as the company can leverage the resources and strengths of its strategic partners.
Low risk is the second benefit. The third is merger and acquisition, which may has the greatest risks. One advantage in doing so is that a company can rise among the top-rank companies and enhance itself in a short time. The other one is that a company can acquire some critical resources like technology, channels, and talents.
Galanz can set priorities to achieve competitive advantages, such as:
To take full advantage of global resources and business opportunities, a company's internal organization and management capability must be built. There are three important factors: enough talents for globalization, talents must have global mindset and having governance, systems and organization structure that su.....
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