Galanz Strategy Evolution Course And Evaluation

At the early stage of reform and opening policy, the Chinese enterprises experienced a high successful rate with a variety of strategies (sometimes they even didn't need a strategy), for the Chinese economy was in kind of overall shortage situation. But in recent years, particularly after China's entry into the WTO, more and more foreign enterprises flow into China's market. Therefore, the enterprises must study and choose their own strategies, take competitive advantage and establish the market status through strategy implementation. It is particularly true to the privately owned enterprises in China. The choice of their strategies has become an increasingly focus in the academy community as well as the industry.The paper took Galanz as the objective of strategic research, as it is a privately owned enterprise which was born and grew locally, from nothing to small, weak to strong; It is a real transnational company of international operation, with 35% dominant products share of the global market and the cooperation with over 100 multinational enterprises; It is a real over-speed developing enterprise, leading product listed to be No. one country-widely in three years (70% market share) and world-widely in six years. The analysis of Galanz's strategy evolution course has the important inspiriting significance to the Chinese enterprises' strategic choice.The paper firstly proposed "the turtle" and "the robot" analytic methods which were kind of improvement based on the traditional inside and outside analytic method .The exterior analysis integrated macro-environment , industry environment as well as the main strategic competitors into a whole analysis system. While the interior analysis combined the traditional function analysis method with value chain analysis method, and divided it into three parts: supporting activities, basic activities and outcomes of enterprises.Then, the paper used above method and the SWOT matrix doing some strategic analysis of Galanz's inside and outside environment for its strategy formation stage, and put forward several strategic advices for Galanz group. Compare it with the Galanz concrete implementation strategy, we found out the success of Galanz lie in: 1, the enterprise adopted the concentration strategy while its strength was obviously inferior to the overseas electrical-appliances giants; they continuously focused on their comparative advantage in manufacturing. 2, Follow a through total cost leading strategy, "the cost" consciousness is reflected in every implementation. 3, It carries out a correlative diversification strategy on the precondition that it had gained absolute competitive advantages in the original field. However, the main disadvantage of Galanz's strategy is the lack of clear brand strategy, although Galanz has already obtained a huge success in microwave oven market, but there is no value description and plan for its brand.Finally, through the analysis of Galanz's strategic choice in each stage, this paper summarized the concrete evolution process of the company: took the concentration strategy at the initial stage of establishment, which means focusing on one operation field .After the microwave oven service already expanded to a certain scale, Galanz turned to the integration strategy; In order to avoid the capital concentration risk, it adopted a strategy of industrial correlative diversification. The strategy choices of Galanz in different stages, which were concentration strategy, diversification strategy and total cost leading strategy, are basically in accordance with our strategic analysis in the paper. The achievements of operationalso proved their right strategy choice.I do hope the summarization of the Galanz's strategy evolution course can be used for reference in strategy establishment to other similar enterprises in China.