Strategic risk
- inaccurate predictions of customer preferences – both in terms of behaviour during the purchasing process, the volume of demand for products, and product features (e.g. paint colours favoured by customers);
- inappropriate assessment of changes in the competitive environment (consolidation processes or new companies entering the market), which may lead to the loss of the current position on individual markets;
- incorrect assessment of the potential of the markets on which the Group focuses its activities, incorrect assessment of the future dynamics of the decorative paints and construction chemicals market. A faster pace of the market growth than assumed by the Group may result in the Group’s failure to adapt its production potential to increased demand and losing its current market position.
These risks are mitigated through strategically managed and conducted market research and analysis of consumer behavior, as well as market and competition monitoring, which in turn allows for an agile response to changes in the business environment and supports maintaining a high market position.