But now, CD-R King has grown from being just a media provider to a full grown technology provider with over 100 branches all over the Philippines.
If you are like me who likes to try out new things and prefer to buy them cheap, you have probably waited on the long line in one of their branches. However, almost everybody rich, middle-class or poor would like to save some money or be able to buy more with their money and patiently wait on the long line just to get that cdr king router , mouse, speakers, notebook coolers or any other device that they could buy cheap.
But what is behind the CDR King success? What makes their system so effective? Is it the products they sell? Is it the (grumpy) staff they employ? Is it the CDR King Brand Name?
Below, I will try to break down the things that I think attributes to their success. I'm not familiar about the cdr king history so the things I will cite here are only based on personal experience and observations.
CDR King Success Factors
Purely based on my observation, I think that CDR King became successful because of the following factors
Cost Advantage - If you've read one of my previous posts about the 4 sources of competitive advantage mentioned by Mariusz Skonienzky in his stock investing book, you'll quickly realize that CDRKing has a cost advantage over its competitors. They could price their products lower simply because
- CDR King does not rely on selling branded equipments
- They do not require heavy advertising
- They do not usually give a very long warranty which usually adds up to a gadget's price
Niched Market - Right now they only exist here in the country as CDR King Philippines and their mission/vision statement is taylored specifically to the Filipino people. They did not try to target all types of consumers or big establishments, but probably just the C and D Market here in the Philippines. The strategy is to penetrate the technology market through the "regular juan" type of customer and that is through my first point, cost advantage
CDR King Could Get Bigger and Better
If I have to point out one weakness to CDR King is their poor customer service. I don't think I have to explain, there's a lot of complain about them over the internet, even friends and family would rant about their grumpy sales people. Why is the CDR King customer service so slow by the way? I'm sure that if they can improve in this area then they will really dominate the market.
Like many technology companies, CDR-King had its fair share of being slapped by the government (an issue about illegal importation). And I do not know who are the people behind this very successful business, but they sure are smart and they did a good job of keeping the Filipino people up to date with the latest IT Gadgets.