| Cheap Chinese labour is a cost advantage which Chinese enterprises inherentlyown. Domestic appliance industry and other manufacturing industries has been made thesuccess by the Cost leadership strategy. They encountered many problems in thesustainable development. Analysis of their successful experiences and exploration ofcompany strategies to sustainable development are in order to provide a meaningfulreference for achieving the goal which China enterprise become a world-classenterprise.In manufacturing enterprises which rely on the successful strategy, Galanz is oneof the most typical. By understanding the Galanz historical background and currentstatus, as well as household appliances which their microwave belongs to and externalenvironment, we knew that Galanz had been made the success by integration ofresources and cost leadership. However, in the2000, Galanz met developmentbottleneck. Then by second round of restructuring, Galanz has been overall developingin household appliance industry and taking the road to diversity. But, Galanz has someproblems including lack of its own core technology, low profitability and so on. It wasnot smooth by full development in the home appliance industry, still in the explorationstage. By differentiation strategy Tencent use and cost leadership strategy Midea use incontinuing development, we got inspiration. And then we got strategic directions whichGalanz should adopt. Through SWOT analysis that analysis of Galanz’s strengths andweaknesses, opportunities and threats in the external environment, we got strategiescould be used: cooperation and mergers strategy, brand strategy, cost leading anddifferences of mixed strategy, transverse integration strategy. Above of analysis andconclusions are based on blue sea strategy theory, Red Sea strategy theory, five forcemodel, diversified strategy, and series of classic theory. And we have used these discipline theory to innovation on development research of Galanz. For calm and soberanalysis of this quite successful enterprises such as Galanz of further development andsustainable development, we will clean up development bottleneck of the enterprise, andgain countermeasures for sustainable development. |
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