Business and Other Risks
3. Competitors and the Industry
Prices for products and services may decline due to reasons such as changes in market environments, intensifying competition, technological innovation, and other factors.
We are making efforts to expand sales of competitive products and services derived from an awareness of customer needs and industry trends, by anticipating such technology- and competition-driven price reductions for ICT services such as cloud computing services. We are also pursuing a variety of measures to reduce costs.
In spite of these steps, the Group still faces the risk of larger than expected declines in prices, as well as being unable to achieve cost reductions and sales growth due to fluctuations in procurement costs. Any of these risks could negatively impact Group sales and profitability.
In addition to challenges posed by existing industry peers, competition from new market entrants continues to intensify in the ICT sector. Today, new entrants continue to emerge in market areas where the Fujitsu Group has a competitive advantage, thus entailing the risk that we may lose our competitive edge or fail to secure a clear competitive advantage in the future business operations.
In addition to the above, technological advancement in the ICT sector occurs at an extremely fast pace, leading to rapid turnover in new products and technologies. In this context, the continuous development of state-of-the-art technology is required in order to maintain the Fujitsu Group’s competitive advantages.
The Fujitsu Group makes its utmost efforts to secure highly competitive technologies and services, but if we lose our advanteges to the competition that is developing innovative technologies, the Group’s market share and profitability will decline, which would negatively impact our sales and earnings.