格兰仕的成本领先战略(PDF 10页)

I. Introduction
As China became the workshop of the world in the 1990s, cost leadership lifted many
manufacturers to the ranks of the most competitive producers in emerging markets. At
the forefront was Galanz Group Co. Ltd., which transformed from a duck feather trader
to the leading microwave oven maker in the world.
Currently, Galanz has about 80 production lines manufacturing more than 15 million
microwave ovens annually and partnerships with nearly 200 companies. The company’s
global market share is now about 40%.
Galanz’s built its success on relentlessly lowering operational costs and intense
marketing that featured timely discount retail prices. From 1993 to 2002, the firm cut
prices for the eight straight times at an average reduction of 20%. However, the pricing
strategy has been under pressure in recent years. Rising incomes in China have made
consumers less price sensitive.
The experience of Galanz demonstrates how changing purchasing power and consumer
demands have altered markets within a short period of time in China. Businesses who
establish market leadership through a low pricing strategy must be prepared to shift
their emphasis to other marketing features such as functionality and imaging.
This paper offers a brief look at how Galanz established itself as the global and
domestic leader in microwave oven production but found itself under pressure when it
relied on low pricing too long.
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