Toward a Better Understanding of Market Revitalization

Abstract

This paper focuses on “the phenomenon of Market Revitalization”, which transforms from maturity or decline in the process of market evolution into a stage of regrowth. We review some previous research about market revitalization and look for clues about constructing perspectives on market revitalization. There are some revitalizing factors, which account for market revitalization. Revitalizing factors consist of external factors which firms can't control directly, and working factors which firms can work on entering market independently. Previous research discusses the secrets of vertical interaction between the firm's entry and its customers in market. Before this interaction, the firm's view about the market environment contributes to market revitalization. But the previous research doesn't concretely discuss the mechanism of horizontal interaction between firms entering the market. This interaction centers oncompetition and cooperation among firms. Assuming that a certain firm's action is a trigger factor for market revitalization, there are great ripple effects from new directions of innovation and innovation's intensification through interlocking of actions as entering firms compete or cooperate in the market.