Los Angeles, CA (PRWEB) February 13, 2014
Digital printing services have a buyer power score of 4.3 out of 5. This score indicates a high level of buyer power, driven by low market share concentration, low product specialization and favorable pricing trends. The primary factors negatively impacting the buyer power score are supply chain risk and recent demand driver volatility; however, these factors have minimal effect on the buyer. The market for digital printing services is fragmented, with the top suppliers holding only a small share of the market. The top suppliers include Consolidated Graphics Inc., Vistaprint NV, The Standard Register Company and Cenveo Inc. According IBISWorld analyst Kayley Freshman-Caffrey, this characteristic benefits buyers, providing them a wide array of suppliers from which to choose. Similarly, low product specialization allows buyers to source services from a number of digital printing service providers, rather than having to seek out a niche supplier. In general, buyers have plenty of options when choosing a supplier to consult for the services they require, allowing them to pick one that best fits their needs in terms of price, quality and other factors.
Supply chain risk reduces the amount of power that buyers have in the market. The increasing ubiquity of digital platforms for communication uses has undermined the value of print materials, jeopardizing the profitability of printing service firms and the companies in their supply chain, which could lead to service disruptions for buyers, continues Freshman-Caffrey. At the same time, risk among digital printing service providers is low, and the risk of other components in their supply chain is medium. The possibility of bankruptcies and price fluctuations exists, but is not a pressing concern for buyers.
Fluctuations in demand also temper buyer power. However, while demand drivers experienced a medium level of volatility during the three years to 2013, volatility levels are anticipated to drop during the three years to 2016. Consequently, demand driver volatility will not significantly affect the pricing environment for digital printing services. Overall, despite recent demand driver volatility and moderate supply chain risk, buyer power for digital printing services remains high. For more information, visit IBISWorld’s Digital Printing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of digital printing services. Digital printing refers to the use of computer-controlled nonimpact printing equipment to print documents. Types of digital printing equipment include electrophotographic and inkjet printers. Substrates for digital printing vary, ranging from documents to business cards to promotional products. This report does not cover rotogravure printing, offset printing, flexographic printing or screen printing.
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.