Digital Innovation Strategies in Mature Markets:

A Case Study of Crest Holdings K.K.

Abstract

Marketing research has long been concerned with the characteristics of markets in which businesses are conducted. In particular, it has been argued that one should focus on growing markets and avoid entering mature markets. Innovation is difficult in a mature market; therefore, businesses easily get caught in a downfall from a mature to a shrinking market. This is especially true for small and medium-sized businesses with insufficient managerial resources. Crest Holdings K.K. developed mainly by producing signboards for retail stores by bringing innovation to this area. Management efficiency was improved through digitalization and development of “esasy”, a camera that enabled observation of the effectiveness of stores’ signboards and advertisement. In this paper, we focus on the digital innovation strategy taken by Crest Holdings K.K. and their process of digital transformation through innovation by spending revenue generated from increased productivity due to digitalization. This case suggests that even small and medium-sized businesses can be revitalized in a mature market by improvement of management efficiency and innovation, if they can become digitalized.