II. Risks in Fujitsu Group Business Activities

3. Competitors and the Industry

[ Overview and impact of risks ]
Changes in market environments, intensifying competition, and technological innovation may lead to a decline in prices for products and services. Due to this, in the event that prices decline more than anticipated or there are significant fluctuations in procurement prices, the Fujitsu Group will not be able to achieve sufficient cost reductions or an increase in sales, which will affect the Group’s revenue and profit or loss.

Further, in the ICT industry, in addition to challenges posed by existing industry peers, competition from new market entrants continues to intensify. Today, new entrants continue to emerge in market areas where the Fujitsu Group has a competitive advantage, presenting the possibility that we may fail to maintain our clear competitive advantage in future business operations. Technological advancement in the ICT industry occurs at an extremely fast pace, even new products and technologies rapidly becomes obsolete. In the event that the Fujitsu Group loses our competitive advantage in the competition to develop these technologies to other companies, market shares and profit margins may decline, and the Fujitsu Group’s revenue and profit or loss may be affected.

[ Measures against the risks ]
The Fujitsu Group assumes that technological advances and intensifying competition will lead to lower prices for products and services. The Group will gain insight into issues from societal trends and understand customers’ needs and the status of other companies, as well as work to increase our sales through expanding the lineup of our competitive products and services and reducing costs.

In addition, to maintain competitiveness, it is necessary for us to continue the R&D of leading-edge technology. The Fujitsu Group, by initiating the appropriate investments in R&D, will work to clarify the strengths of our business and how we differ from our competitors, and ensure the competitive advantage of our technologies and services.