Declining Competitiveness and Profitability Due to Commoditization and Intensifying Price Competition
First written in FY2016. 5 of 8 entries say "Materialised", first in FY2017. Latest entry: FY2026.
Hitachi moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 38 of 83 companies on the "Worse" side.
33 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In recent years, the rapid advancement and adoption of advanced technologies, including AI and robotics, have substantially changed the competitive environment and the nature of competition itself, becoming important factors affecting the Group's competitiveness.」
In addition to conventional commoditisation and price competition, explicitly identified changes in the competitive structure driven by AI and robotics as a risk. - FY2025WorsenedAnnual report
「Even advanced products, systems and services are increasingly being commoditised, with manufacturing, development and service delivery shifting to low-cost regions and with greater adoption of cloud computing and automation, intensifying price competition. At the same time, costs associated with manufacturing and selling products and providing services may increase due to higher raw material prices and personnel expenses, the impact of tariffs, and foreign exchange fluctuations.」
Added cloud computing and automation as factors driving price competition, and also cited higher costs due to raw materials, personnel expenses, tariffs and foreign exchange movements. - FY2020-Q2MaterialisedAnnual report
「Revenue decreased 9% year on year to ¥529.9 billion due to foreign exchange effects, lower revenue from the railway systems business in the UK, and lower selling prices in the building systems business in China, among other factors.」
Lower selling prices in China's building systems business materialised as a factor contributing to lower revenue in the Mobility segment. - FY2019-Q3MaterialisedAnnual report
「Revenue decreased 12% year on year to ¥352.8 billion, while adjusted operating profit decreased ¥5.8 billion year on year to ¥9.6 billion, due to higher raw material prices, foreign exchange effects and lower domestic consumer electronics selling prices, among other factors.」
In the Lifestyle and Ecosystem business, lower domestic consumer electronics selling prices affected performance, with revenue down 12% and adjusted operating profit down ¥5.8 billion. The impact of price declines and competitive pressure continues. - FY2019-Q1MaterialisedAnnual report
「Despite the impact of a decline in average selling prices in China's elevator business and other factors,」
A decline in average selling prices in China's elevator business was cited as a performance factor, and the impact of price competition and price declines continues to materialise. - FY2018MaterialisedAnnual report
「The Advanced Materials segment recorded a loss of ¥11,012 million. The main component was an impairment loss of ¥8,011 million on operating assets, including machinery and equipment, due to lower profitability in the aluminum wheel business.」
The impact of competition and lower profitability materialised as an impairment loss of more than ¥8 billion resulting from lower profitability in the aluminum wheel business. - FY2017MaterialisedAnnual report
「Impairment loss of ¥4,846 million due to reduced future earnings prospects and other factors accompanying intensifying competition in the consumer electronics business」
Lower future earnings prospects resulting from intensifying competition materialised as an impairment loss in the Lifestyle and Ecosystem business. - FY2016First statedAnnual report
「Even advanced electronics products are increasingly being commoditised and manufactured in low-cost regions, intensifying price competition.」
Identified computer-related equipment, consumer electronics and other products as being particularly exposed to intense price competition and price declines.