Upfront Investment and Market-Fit Risks Associated with Entering New Business Areas
First written in FY2020. 1 of 3 entries say "Restated". Latest entry: FY2023.
The whole theme swung hardest in 2025: 6 of 14 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2023Clarification of exit criteriaAnnual report
「We seek to minimize these risks through market research on the markets we plan to enter and careful scrutiny of business plans. After entry, we determine whether an exit is necessary based on predetermined exit criteria.」
As measures to address the risks of entering new business areas, the company identifies market research and careful scrutiny of business plans, as well as exit criteria following entry. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, there were no material changes in the occurrence of major risks that management recognizes could materially affect the financial position, operating performance or cash flows of the consolidated companies, among the matters concerning the business and accounting conditions described in the quarterly report, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there has been no occurrence or material change regarding the risk of upfront investment and market fit associated with entering new business areas. - FY2020First statedAnnual report
「Entering a new business area may require a substantial upfront investment, while additional risk factors specific to that area may arise and become risks for our group.」
Regarding entry into new business areas, the company identifies the burden of upfront investment, area-specific risks, a mismatch between technology and the market, and uncertainty about market growth as risks.