Business Model

CTC’s Position and Changes in the Operating Environment

The most important factors underpinning the CTC Group's competitiveness are the relationships builtwith many outstanding IT vendors over the years, numerous high-quality products and technologies, and a wealth of expertise on handling these products and technologies in cloud environments. Our multi-vendor and technological expertise are strengths that play together to enhance these factors in a virtuous cycle.

Business Model Characteristics

By Model

One characteristic is the high degree of trust we have earned in infrastructure construction by selling products and combining numerous products and the cloud. As our clients’ businesses grow more digital, we are stepping up our responsiveness to application development. At the same time, to stabilize earnings we are focusing on the service sector—chiefly in areas of recurring business.

Revenue by Business Model (Fiscal2019)
                    Services 39%
                    SI Development 22%
                    Products 39%

By Business Segment

We are strong in the telecommunications business, thanks to a track record spanning many years in the design and configuration of communications networks for carriers. Even so, we have built up a business portfolio that is relatively balanced by industry sector, generating stable earnings.

Revenue by Business (Fiscal2019)
                    Enterprise 25%
                    Distribution 9%
                    Telecommunication 36%
                    Regional and Social Infrastructure 12%
                    Financial Services 5%
                    Other 13%

Market Changes

The operating environment surrounding the IT industry is changing rapidly. Other trends we follow closely include clients’ operating environments and global economic trends, particularly in the ASEAN region. When executing its strategies, the CTC Group mainly takes the following environmental changes into consideration.

  • P (Political)

    • Introduction of laws and regulations related to information security
    • Establishment of finance-related laws and regulations and growth of cashless payments
    • Demand for higher labor productivity in keeping with work-style reforms
    Factors Limiting Growth
    • Restrictions on the use of specific products due to worsening relations between countries
  • E (Economical)

    • Growth in emerging-market economies, centered on the ASEAN region
    • Acceleration of IT investment centered on DX
    Factors Limiting Growth
    • Slow economic growth in Japan and other developed countries
  • S (Social)

    • Demand for large-scale social infrastructure as populations concentrate on urban areas
    • Demand for regional innovation and revitalization of local economies
    • Globalization of business
    Factors Limiting Growth
    • Decreases in the working population
  • T (Technological)

    • Full-fledged commercialization of 5G
    • Outsourcing needs accompanying growing system complexity and sophistication
    Factors Limiting Growth
    • Product commoditization
    • Shortage of highly skilled IT personnel, rising human resource expenses
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