Los Angeles, CA (PRWEB) April 16, 2014
Seismic and geophysical services have a buyer power score of 3.2 out of 5. “This score signifies that buyers in the seismic and geophysical service market have a medium level of leverage in the negotiation process,” says IBISWorld procurement analyst Deonta Smith. A high level of competition positively impacts buyer power, but other factors, including high market share concentration, high levels of specialization and the low availability of substitutes, negatively impact buyer power.
Because many service providers operate on a national level and in multiple regions, buyers have a large selection of vendors in many geographic areas that may suit their needs. “However, although large vendors do make up the majority of service providers, only a few firms control most of the market share, monopolizing larger regions and, thus, limiting a buyer's options,” says Smith. Furthermore, because buyers enter into customized contractual agreements with only one seismic and geophysical services supplier, it is difficult for buyers to switch firms without incurring a loss. Major suppliers include Baker Hughes Incorporated, Weatherford International Ltd., Halliburton Company and China Oilfield Services Limited.
The lack of substitutes for related services further limits the buyer's options. If a buyer is not satisfied with the larger vendor that services their geographic location, only a smaller seismic and geophysical service provider may be a more viable alternative. Buyers' can obtain transportation discounts by purchasing seismic and geophysical services from providers located within their operating region, but seeking out a larger vendor to satisfy their needs can help buyers gain leverage by creating competition during the negotiation process. This competition expands the range of contractors from which a buyer can choose, aiding buyer power.
For more information, visit IBISWorld’s Seismic & Geophysical Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of seismic services, which vary from well velocity survey services to borehole seismic land acquisition services. Service providers gather, interpret and map geophysical data.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.