< BR> in China may not find the second as the microwave oven This "brand high degree of concentration", or even into the "oligopoly" in the industry: First Corps Glanz market share accounted for about 60%, the second accounted for 25% of LG Corps, while the third row , the fourth of the Panasonic and Samsung are only about 5%. Because of this particularity, microwave oven industry, the "cost barrier" to stand on the "technical barriers" in front. Annual production capacity of 15 million units of its total cost Galanz lead, run up the industry's "threshold."
Galanz Enterprise (Group) Corporation, formerly known as Guangdong Shunde guizhou feather products factory in June 1992 officially changed its name to Galanz Enterprise (Group) Company. In 1992, Galanz Toshiba introduced the most advanced microwave production line put into operation within six months. Decades, Galanz expanding production scale, investment in plant production from 10,000 units that year to produce microwave ovens to 60 million units in 1996, 1997, increased to nearly 200 million units, now has the world's largest microwave oven production base, the annual production capacity of 15 million units. Galanz repeatedly since 1996 set off "bargains Storm", a large number of small-scale manufacturers are being forced out of the market. A few years later, and Galanz can compete against the remaining Xiachu a second South Korean market, LG. Glanz monopoly current domestic 60%, 35% of global market share, China and the world "microwave king."
One, the success of strategic analysis Galanz
1, the overall strategy of Galanz
A, specialization strategy. Galanz growth period in the overall strategy is to focus on the core point, about the original large-scale industries operating resources transferred to the new option of "microwave oven" project, from the original evacuation out of the industry to focus all resources operation of this new "point", and take the road of specialization. This focus on the establishment of barriers to entry are an important part of a little strategy. Galanz Group's performance in this area is very prominent, including: first, in the same or lower total cost of the premise, and constantly develop new products and know-how. Second, the use of the total cost of the leading edge, low cost to market good quality products, expanding market share. Third, the key components of development, in the above basis, Galanz started to use its technology to develop key components, and put into production, further reducing overall manufacturing costs.
B, internationalization strategy. Galanz Group International is not only introduced and the integration of the world advanced production equipment and technology, but also in: first, globalization of markets, from a global perspective to the market allocation of resources to form their own brand or OEM products to the global market; Second, the internationalization of R & D, U.S. R & D institutions and organizations to jointly develop China's own technology and new products; Third, the internationalization of human resources, hiring of foreign experts and management personnel to meet international business needs.
C, large-scale strategy. Galanz Group adopted a "puerile" strategy to achieve maximum size and the highest concentration of manufacturing industries to enhance the market competitiveness and reduce business risk; and then use the "maximum size" of the positive effect of reaction "small profits more marketing "strategy to promote, both mutual promotion, promotion, making a virtuous cycle of business shows the developing trend, which no doubt for Galanz is a very correct in terms of marketing strategy. 2, cost leadership strategy and economies of scale
Glanz summed up the core competitiveness of the two words: scale manufacturing.
Galanz into microwave oven industry has always maintained overall cost leadership strategy, and it is so often a significant price reduction in its cost is much lower than the competition, there is a large enough profit margin. On the one hand, the rapid expansion of production capacity, achieve economies of scale; the other hand, sales through price cuts and three-dimensional to expand market capacity, increase market share, which in the short term to get the rapid increase their strength. Economies of scale, simply, is that while increasing the input of all factors of production, expand production scale, by the scale of operations, and achieve extraordinary development of enterprises.