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.
Despite 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/or sales growth due to fluctuations in procurement costs. Any of these risks could negatively impact Group sales and profitability.
Further, 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, presenting the possibility that we may fail to secure a clear competitive advantage in future business operations.
In addition to the above risks, technological advancement in the ICT sector occurs at an extremely fast pace, leading to rapid turnover in new products and/or 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 maintain highly competitive technologies by expanding into new markets, but if our advantages are lost to competitors developing innovative technologies, the Group’s market share and profitability will decline, which would negatively impact our sales and earnings.