The risk associated with competition
Individual companies comprising the Group operate in a highly competitive environment. The following competitors have been operating on Śnieżka’s key markets for a long time:
- large international corporations;
- local entities.
Relatively high crossbars to enter the onto the market mean that to start up a new business in the industry would require large capital expenditure. The most likely way for a new player to enter the market or for significant changes in the balance of power may be an acquisition.
According to the information held by the Group, in 2023 no merger or acquisition transaction occurred in the key markets of the Group’s operations which would significantly affect the market share structure.
A constant element of the Group’s operations is monitoring of the activities of other entities in all key markets. Mitigating the risk associated with competition activities is achieved through appropriately planned investments and marketing and sales activities aimed at supporting the building of shares and brand recognition as well as the sale of the Group’s products.