Case Study on Epsilon Electronics Inc.

1. Epsilon Electronics Inc.
Case Study

2. Epsilon Electronics Inc. History
• Epsilon Electronics Inc. was founded in 1983
• They have a rich history in the automotive
audio and video industry
• Epsilon Electronics Inc. was the second U.S.
company to enter the video category in 1996

3. Epsilon Electronics Inc. Industry
• Epsilon Electronics Inc. competes in a highly
competitive industry since they manufacture
technology
• Highly saturated market – players from all
over the world
• Customers have bargaining power

4. Epsilon Electronics Inc.
• In order to avoid cannibalization of their
products and to segment the market better,
Epsilon Electronics Inc. has five different
brands in their portfolio
• They can compete on price with some brands
while still offering higher end products to
other customers.

5. Epsilon Electronics Inc. Brands
•

6. Epsilon Electronics Inc. Brands
• Power Acoustik: leading brand name in
Epsilon Electronics’ portfolio. Their mandate is
to continue to increase the value of products
for our customers. They have a focus on
innovation.
• Precision Power: Epsilon has won many
awards with the products offered in this
brand. Always looking out for new tech.

7. • Soundstream Technologies: Leader of the
mobile audio for the past two decades.
Epsilon Electronics Inc. has won over 90
industry awards for innovation and
performance with products under this brand.
• Farenheit: Epsilon Electronics Inc. has created
this brand in order to compete on price. Yet
they continue to offer excellent products.
Epsilon Electronics Inc. Brands con’t

8. Epsilon Electronics Inc. Brands con’t
• SPL: Epsilon Electronics Inc. created SPL for
innovators and early adopters (see innovation
adoption lifecycle). The SPL brand of products
has been synonymous with power,
performance and quality products, so if
customer are inclined to be the trendsetter,
then this the brand they are looking for!
•

9. Epsilon Electronics Inc.
• Competitive Advantage: Epsilon Electronics
Inc. attributes part of their success to their in-
house approach for product research and
development.
• With their many brands, it will prevent
cannibalizing their different lines of products.
•

10. Epsilon Electronics Inc. Moving
Forward
• Epsilon Electronics needs to constantly keep
track of new and emerging trends in their
industry as well as other ways they can create
new product lines.
• With cellphones and ipads becoming
increasingly popular, they should integrate the
use of their products with bluetooth.
•

11. Epsilon Electronics Inc. SWOT
• Strengths: Long history within their industry
• In-house research and development
department
• Different brands to prevent cannibalization
and better segmentation
• Weakness: Since Epsilon Electronics Inc. has
been around since ‘83, they have a hard time
continuously coming up with innovative
products.
•

12. Epsilon Electronics Inc. SWOT
• Opportunities: Emerging markets as well as
Frontier markets are have increasing demand
for these products
• Threats: Barriers to entry are low in their
industry
• Customers have bargaining power