Profitability Pressure from Low-Price Competition and Technological Innovation
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2026.
Pca moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
The whole theme swung hardest in 2026: 28 of 57 companies on the "Worse" side.
20 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In recent years, the software-services market has expanded beyond core business operations to peripheral operations, and low-price competition, tantamount to price destruction, has advanced rapidly.」
The company continues to identify as a risk a competitive environment in which low-price competition has expanded from core business operations to peripheral operations and peripheral-service providers are entering the core-business market. It also indicates the possibility that AI and automation technologies could replace existing operations in smaller markets. - FY2023WorsenedAnnual report
「In recent years, the software-services market has expanded beyond core business operations to peripheral operations, and low-price competition, tantamount to price destruction, has advanced rapidly. In particular, providers of peripheral-operation services have been expanding rapidly, and some have begun using those services as a foothold to offer integrated services in core business operations, indicating changes in the external environment and the positioning of competitors.」
The company describes a competitive environment in which low-price competition has expanded from core business operations to peripheral operations and peripheral-service providers are entering the core-business market. - FY2021RestatedAnnual report
「In recent years, providers offering services at low prices by narrowing the overall range of functions in the cloud have been growing their businesses.」
The company identifies competitive pressure from low-price service providers as a priority issue and indicates a policy of differentiating itself through the overall cost-effectiveness of its services rather than price competition. - FY2018RestatedAnnual report
「In recent years, low-price competition, tantamount to price destruction, has advanced rapidly in the business packaged-software market. In addition, rapid technological innovation is changing the movements of competitors across the industry, including new competitors.」
The company continues to identify changes in the competitive environment caused by low-price competition and rapid technological innovation as factors pressuring profitability. - FY2017RestatedAnnual report
「In recent years, low-price competition, tantamount to price destruction, has advanced rapidly in the business packaged-software market. In addition, rapid technological innovation is changing the movements of competitors across the industry, including new competitors.」
The company continues to identify changes in the competitive environment caused by low-price competition and rapid technological innovation as factors pressuring profitability. - FY2016First statedAnnual report
「In the business packaged-software market, low-price competition, tantamount to price destruction, is advancing rapidly. In addition, rapid technological innovation is changing the movements of competitors across the industry, including new competitors.」
The company identifies profit pressure from competition with low-priced products and new services as a risk.