Low-End Disruptive Innovation Mini-Case : Cresyn Co., Ltd. Korea
DISRUPTIVE INNOVATOR MINI CASE : CRESYN CO.,LTD.
20 Oct. 2008
COMPANY OVERVIEW
- Cresyn is a manufacturer of earphones, headphones, and accessories. They currently produces almost 1/3 of bundled earphones for all mobile phones worldwide. OEM/ODM manufacturing for big names such as Samsung, LG, Motorola, etc. is the main source of their profit (90%) and they have their own brands ‘Cresyn’ and ‘Phiaton’, as well.
MAIN ISSUE
1. Performance
- Initial Phase (1959-1981) : Cresyn was founded in 1959 as “Daehan Phonograph Needle Factory”. Later, they decided to jump into a new business and started manufacturing stereo earphones for Matsushita Electric Industrial (former Panasonic) as OEM from 1981, following the huge success of Sony’s Walkman.
- Initial Phases – Grounding (1981-1992) : They incorporated Shinwoo Audio Co.,LTD. and concentrated on low-price bundled earphones market, while registering “Leemax” as their own trade mark and investing in building factories in Korea and Indonesia.
- Growing Phase (1992-2003) : As portable music device and cell phone market are getting bigger, their market share also gradually grew and they started manufacturing as ODM as well. After changing their corporate name to Cresyn Co.,LTD., axe-shaped earphones LMX-E700 with their own Cresyn brand made a big hit in Korean consumer market.
- Taking-off Phase (2003-present) : In OEM/ODM market, their market share reached over 30% worldwide. Cresyn went out to international consumer market through subsidiary companies in US, Japan, China, Hong Kong, Indonesia, and Vietnam, meanwhile, they launched high quality “Phiaton” brand in CES 2008 fair aiming US market.
2. Cresyn’s Model
- Low-end disruption : Starting from low-price bundled earphones market(OEM) to mid/high-price bundled product market(ODM) to low/mid price consumer earphones market(Cresyn) to high-end equipment market(Phiaton)
- Diversification for disruptive innovating : Blue tooth headset with new technology
20 Oct. 2008
COMPANY OVERVIEW
- Cresyn is a manufacturer of earphones, headphones, and accessories. They currently produces almost 1/3 of bundled earphones for all mobile phones worldwide. OEM/ODM manufacturing for big names such as Samsung, LG, Motorola, etc. is the main source of their profit (90%) and they have their own brands ‘Cresyn’ and ‘Phiaton’, as well.
MAIN ISSUE
1. Performance
- Initial Phase (1959-1981) : Cresyn was founded in 1959 as “Daehan Phonograph Needle Factory”. Later, they decided to jump into a new business and started manufacturing stereo earphones for Matsushita Electric Industrial (former Panasonic) as OEM from 1981, following the huge success of Sony’s Walkman.
- Initial Phases – Grounding (1981-1992) : They incorporated Shinwoo Audio Co.,LTD. and concentrated on low-price bundled earphones market, while registering “Leemax” as their own trade mark and investing in building factories in Korea and Indonesia.
- Growing Phase (1992-2003) : As portable music device and cell phone market are getting bigger, their market share also gradually grew and they started manufacturing as ODM as well. After changing their corporate name to Cresyn Co.,LTD., axe-shaped earphones LMX-E700 with their own Cresyn brand made a big hit in Korean consumer market.
- Taking-off Phase (2003-present) : In OEM/ODM market, their market share reached over 30% worldwide. Cresyn went out to international consumer market through subsidiary companies in US, Japan, China, Hong Kong, Indonesia, and Vietnam, meanwhile, they launched high quality “Phiaton” brand in CES 2008 fair aiming US market.
2. Cresyn’s Model
- Low-end disruption : Starting from low-price bundled earphones market(OEM) to mid/high-price bundled product market(ODM) to low/mid price consumer earphones market(Cresyn) to high-end equipment market(Phiaton)
- Diversification for disruptive innovating : Blue tooth headset with new technology
References: Source : Trade Remedy Review (2008.7) Source : Trade Remedy Review (2008.7) Source : Cresyn official website Source : Trade Remedy Review (2008.7)