Due to increased demand in the wake of a recovering economy, prices are forecast to rise slightly. but will still remain fairly stable.
Los Angeles, CA (PRWEB) November 13, 2013
Videoconferencing services have a buyer power score of 4.0 out of 5. This score reflects beneficial product characteristics, low market risk and favorable pricing trends; however, buyer power is lowered by high market share concentration. As a web-based service, videoconferencing services have low specialization and low switching costs. Low specialization results in a competitive market with both startups and large established corporations that are fighting to win customers and gain market share. As a result, buyers should not have difficulty finding suppliers that can meet their needs. “Low switching costs indicate that there are few penalties for switching to another supplier, reducing the chance that buyers will get locked in,” says IBISWorld procurement analyst Andrew Yang.
Buyers also benefit from low market risks. Many videoconferencing service providers, such as major companies Cisco and Citrix, are established software and hardware corporations with stable revenue and low bankruptcy risks. “These providers are not dependent on critical inputs to deliver videoconferencing services, lowering supply chain risks,” adds Yang. “Nonetheless, buyer power is hampered by high concentration, with the top four suppliers accounting for the majority of revenue in the market.”
Pricing trends have been favorable for buyers, remaining stable from 2010 to 2013. Prices are anticipated to inch up slightly from 2013 to 2016 due to increased demand, but will still remain fairly stable overall. An improving economy will encourage investment in computers and software and increase broadband connectivity; falling computer prices allow for easier access to videoconferencing services. Nevertheless, price increases for videoconferencing services are mitigated by decreasing input costs and increasing market competition. Buyers can still reduce overall purchasing costs through various methods, including purchasing annual agreements instead of paying month-to-month. If buyers do not need extra features or do not plan to host large meetings, they can purchase basic versions of the software rather than premium packages. For more information, visit IBISWorld’s Videoconferencing Services procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of videoconferencing (or web conferencing) services. Videoconferencing services use software and online platforms to facilitate communication and collaboration between people at multiple locations. Videoconferencing services include real-time audio and video communication, provide meeting and collaboration tools and are designed to serve multiple locations and conferences rather than individuals. This report includes software and online platforms used to provide videoconferencing services, but excludes videoconferencing hardware or video telephony services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.