Low barriers to entry and responding to technological innovation
First written in FY2016. 4 of 8 entries say "Worsened", first in FY2020. Latest entry: 2026-08-07.
Startia Holdings moved to the "Worse" side of this theme in 2020, 6 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 34 of 95 companies on the "Worse" side.
19 other companies' latest entry also says "Worsened".
- 2026-08-07WorsenedEarnings presentation materials
「Declining demand among large companies for external SaaS.」
The company specifically identified the risk of declining demand for external SaaS as companies shift to internally developed software using generative AI. - FY2026WorsenedAnnual report
「Rapid technological innovation, including generative AI, poses a risk of relatively reducing the competitiveness of existing services. In particular, because our group's business model places us between AI infrastructure providers and customers, if AI evolution and customer proficiency progress faster than expected, the intermediation value provided by our group may be diluted and profitability may suffer.」
Regarding technological innovation in generative AI, the company explicitly identifies, in addition to the conventional risk of service obsolescence, the risk that the intermediation value of its position between AI providers and customers may be diluted, as well as the risk of missing growth opportunities because of delays in internal AI adoption and human-resource development. - FY2024MitigatedAnnual report
「As a measure to address this risk, our group is conducting broad in-house development across various service fields and technical approaches in digital marketing, while also developing services that use generative AI technology. By proactively replacing areas that can be replaced by generative AI ourselves, we aim to build services capable of delivering greater results. By integrating these diverse services under the Cloud CIRCUS brand, we are creating a structure that enables us to propose and have existing customers use other digital marketing services even if demand for one technology or service declines.」
The company specifies in-house development, including generative AI, and integration of services under Cloud CIRCUS as measures to address the risk of service obsolescence caused by technological innovation. - FY2023WorsenedAnnual report
「As illustrated by the rapid development of generative AI technologies, including ChatGPT, disruptive innovation is occurring in technology fields related to our services. If we are unable to anticipate technology trends accurately and appropriately determine priority development areas and where to invest resources, our services may become obsolete and we may fall behind technological innovation.」
The risk associated with responding to technological innovation has expanded from the evolution of conventional AR and other technologies to the risk of disruptive innovation driven by generative AI and service obsolescence. - FY2020WorsenedAnnual report
「AR software such as COCOAR and LESSAR may evolve more rapidly with the emergence of new technologies such as AI, while user needs may change over a short period.」
The company specifically identifies the evolution of AR software technology and short-term changes in customer needs as risks associated with responding to technological innovation and competition. - FY2018RestatedAnnual report
「However, the differentiation measures pursued by our group may not necessarily be sufficient. If our competitive advantage is eroded by new entrants with strong competitiveness, this could adversely affect our group's business, operating results and financial condition.」
The company reconfirms the risk of losing its competitive advantage because of low barriers to entry and intensifying competition, together with measures such as training in multiple product categories and subscription-based services. - FY2017MitigatedAnnual report
「Our group provides sales employees with training in multiple product categories so that they can sell bundled products and provide services to customers. In addition to equipment-related sales, we are focusing each month on subscription-based services that generate recurring usage fees. We seek to differentiate ourselves by offering a diverse range of products, including products that are highly necessary in corporate offices.」
The company has developed specific measures to address low barriers to entry and intensifying competition through training in multiple product categories, subscription-based services and a diverse product lineup. - FY2016First statedAnnual report
「The industry in which our group operates, centered on the sale of telecommunications equipment, is said to have relatively low barriers to entry for individual products, as it is comparatively easy to become an agent for a telecommunications carrier.」
The company describes the risk that competition will intensify because of low barriers to entry and that knowledge acquisition will be required to keep pace with rapid technological innovation.