i. Competition risk
The mobile application market has an immense competition and very crowded nowadays. Since the continuous growth in the sales of smartphones, the number of smartphones users also has increased and has led to the increased in the number of mobile applications that users used on their smartphones. The Apple and Google App stores now have more than 2 million mobile applications for download (Saifi 2017). Thus, there’s a certain pressure to create applications which get noticed. Since the competition in mobile application development industry is considerably high in Malaysia, there might be a possibility that Remex lose competitive advantage because of unable to compete with existing competitors such as Tesco online, SmartShopper and others. Besides that, the new entrant that enter into the marketplace will also bring impact to the company as there might copy our application idea then launch the mobile application which is similar to us with new features or functions. Thus, Remex can mitigate the risk by always updated the version of the application by adding new features to make it looks great. Besides that, Remex can protect its ideas for being copied by others by asking our internal application developers and designers to sign an NDA (non-disclosure agreement) before starting work with you. We can also trademark, copyright or patent our ideas or design by protecting them by law (Rose 2017).
ii. Market risk
In business world, every business has different market risk. For mobile application company, the market risk is one of the critical risks that Remex should be concern about it as it will affect the company performance. Market risk is the risk that the market will not accept the services or mobile application that we launch. There might be a possibility that the launch application does not have any users want to download it. Generally, this may be due to most of the people are more prefer to use the mobile application which they are more familiar with it such as HappyFresh, Tesco online and others. When the application that launch by Remex does not have users want to download it, then it is all wasted for Remex in term of cost of investment, pre-operating costs and others costs that incurred before. Thus, Remex can mitigate the risk by implementing the pre-launch testing to a selected group of people to get feedback from them to understand better the needs and expectation from them. Besides that, Remex can put more effort in advertising by creating a video that can gain attention of users to social media such as Facebook, Youtube and Instagram.
iii. Technical risk
The software development companies are increasing their portfolios steadily, but there is a shortage of skilled software development candidates in Malaysia. In mobile application industry, technical risk is one of the critical issues that the company needs to be concerned when developing the mobile application. Generally, technical risk will lead to failure of functionality and performance of the mobile application. There might be a possibility that the company does not have enough experts to develop the mobile application. Thus, it will cause the mobile application difficult to implement, inadequate design solutions for the application. Also, there will be a lot of technical problems after the mobile application launch to the market. Thus, the continuous identification and assessment of technical risks is an essential activity that the company need to aware of.