Increasing saturation will force suppliers of executive coaching services to compete on price while demand from US companies wanes.
Los Angeles, California (PRWEB) January 07, 2014
Buyers seeking executive coaching services experience a buyer power score of 3.6 out of 5. The higher the score, the more negotiating power buyers can expect in the market. “This score reflects favorable conditions in the price trend, especially during the next three years, as competition among suppliers heats up and demand falls slightly,” says IBISWorld procurement analyst Nikoleta Panteva. It is also indicative of the market structure and the high level of specialization present within these services.
Buyers are forecast to enjoy declining prices for executive coaching services during the next three years. As business sentiment climbs out of its recessionary and post-recessionary lows, companies will be less likely to source coaching services as their outlook becomes more positive. Moreover, says Panteva, “the number of operators offering executive coaching services will continue to climb, reducing the gap between the quantity supplied and quantity demanded.” As a consequence of these two conditions, the benchmark price is anticipated to fall during the three years to 2016. Buyers will therefore be able to purchase the service at a lower price while exerting stronger negotiating power in the face of mounting competition and waning demand.
However, buyers may not have strong negotiating power in terms of the market structure of executive coaching services. Typically, services are highly customized to the client's needs. Customization is a value-added component, which reflects a higher price. Moreover, there are few viable substitutes to replace executive coaching services perfectly. Management training and team development may fill some of the gaps, but they do not provide the dedicated one-on-one executive attention that coaching services do. Additionally, buyers face moderate switching costs once they are locked into a contract. Cancelation fees are one of the most significant monetary costs, but evaluation, economic risk and setup costs also present a barrier to surmount when changing suppliers. Major vendors inclue Action Coach, Franklin Covey Co., The Ken Blanchard Company and Vistage International Inc.
For more information, visit IBISWorld’s executive coaching services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist businesses in buying executive coaching services. Executive coaching services are aimed at developing the leadership skills of professional executives. Payroll, human resources, recruiting and technology education and strategic consulting are not included in this report.
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
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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.