Risk situation

Sales in the core business are under pressure from intense competition. New offerings in the areas of digitisation and IT services, such as cloud services, IT security and IoT solutions, are intended to compensate for sagging revenue from the core business. Market de­vel­op­ments result in changes to the business model and demand profound trans­for­ma­tion. The key risk factors are addressed below. The main risk factors arising in the supply chain are described in the Sus­tain­abil­ity Report.

Com­pet­i­tive dynamics in the telecom­mu­ni­ca­tions market

Com­pet­i­tive dynamics are currently being driven by in­fra­struc­ture providers and service providers without their own network in­fra­struc­ture. Swisscom is countering this pressure and the decline in revenue from the traditional telecom­mu­ni­ca­tions business by transforming the company and through constant innovation. Mega­trends such as increasing con­nec­tiv­ity, customisation and de­mo­graphic change are indelibly shaping and altering our society and the economy and have a long-term impact on Swisscom’s activities. Swisscom conducts a com­pre­hen­sive external en­vi­ron­ment analysis at least once a year in order to identify potential disruptions at an early stage, harness the op­por­tu­ni­ties these create and counter the risks in good time. It evaluates the future trends and de­vel­op­ments identified by the analysis: for example, to categorise new, potentially disruptive de­vel­op­ments and to model possible scenarios in a timely manner. Swisscom also produces regular analyses of the economic and regulatory en­vi­ron­ment. It also examines the activities of global Internet corporations in greater depth to identify relevant changes and respond with ap­pro­pri­ate mea­sures. To respond to changes in the market, Swisscom consistently focuses on customer needs when transforming its own company and optimises or adapts its processes and organisation.