Increasing overhead costs are likely to be passed on to buyers; therefore, prices for criminal law services are anticipated to continue growing
Los Angeles, CA (PRWEB) May 19, 2014
Criminal law services have a buyer power score of 2.9 out of 5. Buyer power is supported by the very low market share concentration of vendors, which allows buyers to shop around for the best terms. There are many firms providing criminal law services in the United States, giving buyers a wide selection of suppliers. “Each individual supplier is at low risk of bankruptcy or service interruptions,” says IBISWorld procurement analyst Pierre Dessertenne. “Demand for this market is steady and high, providing financial security to suppliers.”
Buyers also benefit from low price volatility. “Despite the price of criminal law services exhibiting growth over the past three years and further growth forecast for the next three, buyers can easily anticipate the next year's rate because growth is steady year on year,” adds Dessertenne. As such, buyers can forecast their criminal law service budgets more easily.
However, there are several factors strongly prohibiting buyer power. First, criminal law services do not have many viable substitutes. Criminal cases require the knowledge and expertise of seasoned professionals, so buyers are unlikely to find any good substitutes for the service, especially when the criminal case is a complex and costly one. Moreover, because each criminal case is unique, buyers receive very specialized legal services, which make switching costs very high. Changing suppliers is costly - both in time and money.
Because criminal cases are time sensitive and require an extraordinary amount of expertise, criminal law services are inelastic. As such, buyers are largely price takers, with little room to negotiate rates. Still, price is not the primary factor on which buyers choose a supplier; a firm's experience and attention to the client are paramount. Top suppliers of criminal law services include DLA Piper, Baker & McKenzie and Skadden, Arps, Slate, Meagher & Flom LLP. IBISWorld advises buyers to minimize their criminal law service procurement risk by researching suppliers ahead of time and creating a short list of firms from which to potentially receive services. For more information, visit IBISWorld’s Criminal Law Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of criminal law services. Criminal law services are carried out by professional legal practitioners that typically have specific expertise in criminal law. These individuals include lawyers, attorneys (i.e. counselors-at-law) and paralegal professionals. Businesses may use criminal law service professionals for cases that involve fraud, bribery, false claims, money laundering, insider trading, financial manipulation and other related acts. This report does not include discussion or information on individual crimes (which include, but are not limited to, kidnapping, driving under the influence and domestic violence).
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
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