Profit margin deterioration caused by price competition with competing SMS services
First written in FY2019. 6 of 9 entries say "Restated". Latest entry: FY2026.
fonfun moved to the "Worse" side of this theme in 2026.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Although the cloud services and digital transformation solutions markets are expected to grow, numerous providers operate in these markets, ranging from major domestic and overseas IT vendors to specialized companies and new entrants, intensifying competition on both price and service development.」
The scope of the risk discussion has expanded from price competition in the conventional SMS message-delivery market to price competition and service-development competition across the cloud and digital transformation markets, as well as the risk of declining market share and deteriorating profitability. - FY2024RestatedAnnual report
「In the SMS business we provide, we are continuing efforts to reduce costs and developing services that improve customer satisfaction, including outsourced services and enhancements to our customer support center. However, if other companies build and begin providing similar services, price competition may result, reducing margins and adversely affecting our business performance.」
The company continues to describe the risk of price competition and margin deterioration due to new competitors entering the market, along with countermeasures involving cost reductions, outsourced services, and enhancements to its support center. - FY2024-Q3RestatedAnnual report
「For SMS services, the overall domestic SMS market is expected to reach 4.46 billion messages in fiscal 2023, with a compound annual growth rate of 26.4% from fiscal 2023 through fiscal 2028 (Mick IT Report, January 2024 issue, Mick Economic Research Institute). Message volumes are expected to continue growing substantially. However, as price reductions in message delivery due to the increasingly significant entry of competitors have become more pronounced, revenue and operating profit have ceased to grow in proportion to this growth, and we recognize that taking prompt measures is a challenge.」
The company continues to recognize the risk that lower message-delivery prices due to competitors entering the market are causing revenue and operating profit to diverge from market growth. - FY2024-Q2WorsenedAnnual report
「For SMS services, the domestic direct-connect market is forecast to reach 14.07713 billion messages in 2026 (Mick IT Report, October 2022 issue, Mick Economic Research Institute), with an expected compound annual growth rate of 40.3% from fiscal 2022 through fiscal 2026, and message volumes are expected to continue growing substantially. However, as price reductions in message delivery due to the increasingly significant entry of competitors have become more pronounced, revenue and operating profit have ceased to grow in proportion to message volumes, and we recognize that taking prompt measures is a challenge.」
The company explains that increasingly pronounced price reductions in message delivery due to competitors entering the market have caused revenue and operating profit to grow out of proportion to market-wide message volumes. - FY2023RestatedAnnual report
「In the SMS services we provide, we are continuing efforts to reduce costs and developing services that improve customer satisfaction, including outsourced services and enhancements to our customer support center. However, if other companies build and begin providing similar services, price competition may result, reducing margins and adversely affecting the performance of our group.」
The company continues to describe the risk of price competition and margin deterioration due to new competitors entering the market, along with countermeasures involving cost reductions, outsourced services, and enhancements to its support center. - FY2022RestatedAnnual report
「In the SMS services we provide, we are continuing efforts to reduce costs and developing services that improve customer satisfaction, including outsourced services and enhancements to our customer support center. However, if other companies build and begin providing similar services, price competition may result, reducing margins and adversely affecting the performance of our group.」
While maintaining the risk of price competition and margin deterioration due to new competitors entering the market, the company describes countermeasures including cost reductions, outsourced services, and enhancements to its support center. - FY2021RestatedAnnual report
「In the SMS services we provide, we are continuing efforts to reduce costs and developing services that improve customer satisfaction, including outsourced services and enhancements to our customer support center. However, if other companies build and begin providing similar services, price competition may result, reducing margins and adversely affecting the performance of our group.」
While maintaining the risk of price competition and margin deterioration due to new competitors entering the market, the company describes countermeasures including cost reductions, outsourced services, and enhancements to its support center. - FY2020RestatedAnnual report
「In the SMS services we provide, we are continuing efforts to reduce costs and developing services that improve customer satisfaction, including outsourced services and enhancements to our customer support center. However, if other companies build and begin providing similar services, price competition may result, reducing margins and adversely affecting the performance of our group.」
While maintaining the risk of price competition and margin deterioration due to new competitors entering the market, the company describes countermeasures including cost reductions, outsourced services, and enhancements to its support center. - FY2019First statedAnnual report
「If other companies build and begin providing services similar to the SMS services we offer, price competition may result, reducing margins and adversely affecting the performance of our group.」
The company newly describes the possibility that competition from other SMS service providers may lead to price competition, adversely affecting margins and business performance.