CDR King Success - A Case Study

CDR King has brought what no one has done before to the Filipino people and that is affordable and up to date technology gadgets. It was perhaps about 5 years ago  or earlier when I was still studying in College, CDR King came out as just a CDR (CD-Recordable) media provider.

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 Store

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
Franchise Model - While I have not seen or heard any information about a CDR King Franchise being offered publicly, CDR King operates just like a successful franchise business. Every gadget you purchase is uniformly labeled with a cdr-king logo, every employee wears a uniform, and every cdr king store has  the same paint color. This is starting to sound like McDonald's but they sell CD's and technology gadgets and not hamburgers. Ironically, they also manually collect payments and manage inventory.

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.
25 comments on "CDR King Success - A Case Study"
Allan @ Rich Money Habits said...

Great post Tim! While I admire how cheap the CDR king products are, I totally agree with you that their customer service sucks big time! It used to be better. Now, that they've grown, sadly to say, their systems have not kept up with the pace.

I think the reason so many people complain is because it takes too much time just to buy anything...this is an unnecessary hassle especially if you already know what you want.
They have this queueing system using CDs with numbers w/c is completely ridiculous.

I think they'd have been better off just setting it up like a grocery store where the buyer can just pick up what he wants, pay up then leave.

It's also worth nothing that with all the tech gadgets that they are now selling, I can't really figure out why in the world are still using manual receipts? It takes too much time. Can't they afford at least a POS machine?

Anyway, this is getting too long...it's just that my experience with CDR king has been frustrating so far. Hopefully, they'll listen to their customers and improve in the future. :-)

Tim said...

Hi Allan of Rich Money Habits!

Thank you for your heartfelt comment, I really appreciate it. I agree with you, CDR King's customer service has not kept face with their growth. I think that making their shop like a grocery store is a good idea, but I doubt that they would ever do that. Hey I got an idea, why don't we do that instead? Lolz!

Carlo said...

One of the reasons they can offer low prices too, is that they don't have an expensive POS system. Manual receipts save a lot of money compared to cash registers which require regular maintenance.

I saw that on their website.

rose_colored_thoughts said...

well said. hopefully they offer a franchise for this as well. If anybody knows if they are already into franchising, leave me a holler.

i agree on the comments on their service before, but i have seen some improvements lately and i do hope they'd evaluate it more to better serve their clientele.

Anonymous said...

a chinese couple owns cd-r king:)

meriam said...

How do we franchise CD-R King?

Tim said...

Hi Meriam, I don't think they're open to franchising.

Anonymous said...

CD-R King's products are indeed cheap, but in return you get bad service, long lines, short warranty period, devices that might fail and just ok quality.

CD-R king has been there when you needed it the most, but a little upgrade would go a long way in the customer satisfaction rating.

Gabrielle said...

Most of CD R-King's Salesladies are snob! Anyways, I keep on buying pa rin kase mura. Tapos yun nga masisira agad, then my mentality "di bale mura naman eh" *toinks ; )

SDRDRJJI-DG(BPS) said...

Before I used to buy different gadgets from CD-R King but because of the quality of the products I swear to myself that I won't by to them any electronic gadget and 1 experience of mine I wont ever forget. I bought a HDD enclosure from CD-R King around March 2011. I went home, assembled the enclosure inserted my 80GB HDD and try to copy the content to my new HDD, I leave it for a while since it take so long to copy it and after 30 mins I had smell something burning as to my suprised I saw the power supply adaptor its burning in hell without thinking I unplugged it and extinguish the fire. I lost my precious data and gladly that I did not lost our house. So never I will by any electronic gadget from them. and as I was saying lots of their gadgets a low rated quality with experience from other gadget like mp3 players, PC internal fan, card readers and USB extension slots. But not all ofcourse I will still buy from them non electronic devices like the Blank optical discs.... hahahaha.... hey I am not here to rant but to share my opinion and experience... peace to all of you guys.....

Anonymous said...

cd-r king is the best :P

MACortes said...

Hi, I am an MBA student of DLSU. Our group is making a case study on how CDR King can improve products and services. We would like to know history of CDR King or any contacts that we can refer to.

Please contact me at toni_cortes05@yahoo.com

Thank you.

Anonymous said...

I don't think that would be a question. The key is their queuing system and CUSTOMER RELATIONS!

Romy Miranda said...

poor and lousy customer service. 

Romy Miranda said...

nag try ako mag email pero walang pumansin. Grrrrrrrrrrrrrrr.

ted said...

di kasi pumunta sa agency nila, para maasikaso ka at mapansin ka,hindi ang job ang hahanap sayo, akiw ang humanap ng job. loser

ted said...

di kasi pumunta sa agency nila, para maasikaso ka at mapansin ka,hindi ang job ang hahanap sayo, ikaw ang humanap ng job. loser

DrolRans said...

ok nman ang CD-R king baka nman naninira lang ung iba dyan, well you should buy branded one if you have money. This words are for us " Good Price, Good Quality " loser

Jhune Mendoza said...

Hi, I am also a student, but from College of Saint Benilde. I am doing a retail management course presentation of the same company, CDR King..perhaps you can help me with it, I hope you can share any related research materials you have gathered while doing your case study of this company. Here's my email..rsmjr04@yahoo.com...thanks

oreo said...

Bakit kaya ayaw mag-avail ng POS system ang CDR-king? hmm....

rhk111 said...

BABOY yang mga tindera ng CD-R King na iyan, ambabastos ng mga punyetang iyan. Sino nga ba ang may ari ng tindahan na iyan? Gusto ko malaman ...

Lynn Cervantes said...

Yung mga nasa Sales laging nakasimangot kaya nakakatamad bumili !

joanne said...

if u don"t like the products, wag n kyo bumili. ok nmn ung products n nbili ko.what do u expect sa cheap products diba? and u think hnd po b nppgod ung mga sales staff nila. ilang oras n cla nktyo and break lng ang pahinga nila.

deng said...

ay nko.....disapointed ak dyn s bwisit n cdrkingyan...
ganito siste.. bumili ak ng optical mouse kc sale cla sk kursunada ko
ung itsura.. 7wiks replacement after a wik hnd k p ngamit kya
ng gmitin k morethan 1wik n.e cra.. pina service k s cdrking sm bicutan..
4 wiks dw bgo mkuha.. anong mgagawa k un ang sabi.
kya pumayag ak.. after 4wiks nag claim ak.. pagtesting namin
di parin ayos..so another wik ult..pyag ult wlng mgawa
pagpunta ko ulit sbi d n magawa dw...1month 1wik wlng ngyari
sbi ng sales lady consume k nlng dw ung 90..sbi k sk nlng pag kaƮlangan
ko na..sbi nya kailangan dw comsume ko na.. parang holdap
wla nga akong kailangan pinilit nla ak bumili..wlng mgawa... so npilitan ak bumili ng hndi ko kailangan... e 80 lng ung npili ko..
sbi ko blik nlng ung 10 pesos hnd dw puede.. anak ng teteng
d kya cla luge.. so sb ko bili pa ak ibang item..ang npili ko
kht hnd ko ulet kailangan ung tag 50pesos akalain m hnd din dw puede
un kailangan lng exact amounth...!! peste tlga!!!! sainyo
n yang 10pesos ko hiyanghiya naman ak s inyo no..
bk luge p kyo... CDR KING kung may mlasakit p kyo s costumer
nyo pkilang ibestigahan nyo!!!! peste!!!!!!!!!!!!

paula said...

kaya mano2 ang pag resibo kasi pag gumamit ng pos ang cd rking wala na kaung mabibili na mura na mga tag 20 na earphones and card reader gadgets..

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