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Risks
1. Risk of Increasing Competition: The market in which Lennox International Inc operates has become increasingly competitive. This may put pressure on the company’s profits and margins as its rivals offer better prices or higher quality products.
2. Risk of Currency Fluctuations: As Lennox International Inc operates globally, the company is exposed to the risk of currency fluctuations. A sudden shift in exchange rates could adversely affect its revenues and profits.
3. Risk of Rising Operating Costs: Rising labor, raw material and other operational costs may lead to Lennox International Inc’s current profits declining in future.
4. Risk of Technological Disruption: The HVAC industry is rapidly evolving and there is a risk that current products may become obsolete due to advances in technology. Thus, the company may be required to spend heavily on research and development to stay ahead of its competition.
5. Risk of Litigation: It is possible that Lennox International Inc may face litigation due to the nature of its products, innovation, or marketing. This could lead to costly settlements or judgments which might hurt the profitability of the company.