Customer Loss and Higher Customer-Acquisition Costs Due to Intensifying Competition
First written in FY2021. 3 of 9 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2026: 31 of 91 companies on the "Worse" side.
- FY2026-H1ReframedAnnual report
「Although the operation of this business requires advanced specialist knowledge and has higher barriers to entry than other businesses, the competitive environment could change if an operator capable of meeting these requirements emerges.」
The scope of the competition risk expanded from the existing businesses to the newly entered rework business. - FY2025RestatedAnnual report
「Our group plans to continue enhancing and improving services to meet customer needs. However, if these initiatives fail to produce the expected results, or if competition intensifies because competitors offer more attractive or innovative services or more competitive terms, or because companies with substantial capital or brand recognition enter the market, customer outflows and higher customer-acquisition costs are expected.」
The company reaffirmed the risks of intensifying competition, customer outflows and higher customer-acquisition costs across the 3 businesses and its policy of enhancing services in response. - FY2024-H1WorsenedAnnual report
「Although we recognize that the business requires advanced specialist knowledge and has higher barriers to entry than other businesses, the competitive environment could change if an operator capable of meeting these requirements emerges.」
For the medical work shift business, the company newly identified a change in the competitive environment caused by the emergence of capable competitors as a risk despite high barriers to entry. - FY2023MaterialisedAnnual report
「In response to a trend toward lower order prices and gross margins caused by price competition with sole proprietors in the contract website-production market, we focused on securing maintenance projects from existing customers, primarily academic societies.」
The company reported lower website-production order prices and gross margins during the full year because of competition with low-priced sole proprietors. - FY2023-Q1RestatedAnnual report
「In response to sluggish order prices caused by intensifying competition in contract development and production, we concentrated the division’s resources on marketing for group companies.」
The digital marketing business continued to face sluggish order prices due to intensifying competition and responded by concentrating resources on marketing for group companies. - FY2022-Q3RestatedAnnual report
「In contract website production, prices and order volume declined because competition intensified with lower-priced freelancers and others. Revenue from advertising-operation projects related to marketing support also leveled off after the end of a contract with a major customer.」
The company continued to experience weaker website-production prices and orders due to competition with lower-priced freelancers, while advertising-operation revenue leveled off after a major contract ended. - FY2022-Q2MaterialisedAnnual report
「In contract website production, the number of orders declined because competition intensified with lower-priced freelancers and others.」
The digital marketing business experienced weaker orders due to intensified competition with lower-priced freelancers and others. - FY2022-Q1MaterialisedAnnual report
「Although order prices have remained sluggish because of intensifying competition in contract production and development, revenue from advertising-operation projects related to marketing support has increased.」
The digital marketing business reported sluggish order prices caused by intensifying competition. - FY2021First statedAnnual report
「As of the filing date, we recognize that the competitive environment is severe in the 3 businesses operated by our group.」
The company cites the potential for customer outflows and higher customer-acquisition costs due to attractive competitor services, lower prices and entry by companies with greater capital and brand recognition.