Intensifying Competition from Competitors and New Entrants and Price Competition
First written in FY2023. 2 of 4 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 31 of 91 companies on the "Worse" side.
- FY2025WorsenedAnnual report
「In addition, because the AI-related market is still immature, its market structure could change rapidly due to developments among competitors and other factors, potentially affecting the financial condition and operating results of the company group.」
The company explicitly identifies, in addition to the traditional risks of customer acquisition and price competition from competitors and new entrants, the risk that the structure of the immature AI market could change rapidly. - FY2025-H1RestatedAnnual report
「During the interim accounting period, there were no significant changes in the occurrence of the major risks that management recognizes could materially affect the company’s financial position, financial performance, and cash flows, or in the matters described as “Business Risks” in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes regarding the risk of intensifying competition from competitors and new entrants and intensifying price competition. - FY2024RestatedAnnual report
「These competitors and new entrants may have greater financial resources, technological development capabilities, price competitiveness, customer bases, sales capabilities, brands, and name recognition than the company. If they use these advantages to develop services, the company may be placed at a competitive disadvantage and may be unable to acquire and retain customers as expected.」
The company continues to describe the risk that competition and new entrants will make it more difficult to acquire and retain customers, while intensifying price competition could reduce profit margins. - FY2023First statedAnnual report
「These competitors and new entrants may have greater financial resources, technological development capabilities, price competitiveness, customer bases, sales capabilities, brands, and name recognition than the company. If they use these advantages to develop services, the company may be placed at a competitive disadvantage and may be unable to acquire and retain customers as expected.」
The company indicates that competition and new entrants, including overseas companies, major corporations, and university spinouts, could make it more difficult to acquire and retain customers and could reduce profit margins.