Rising wage costs and further increases in demand will cause price growth to accelerate
Los Angeles, CA (PRWEB) June 27, 2014
The executive search services market exhibits a buyer power score of 3.3 out of 5, representing a moderate level of power for buyers. “The stable marketplace and high competition between suppliers provide buyers leverage in negotiations, but this leverage is undermined somewhat by the rising price,” says IBISWorld business research analyst Dale Schmidt.
The executive search services market is highly fragmented, with about 35,000 providers competing against one another for business. As a result, most buyers will have many potential suppliers to choose from, and can leverage them against one another to secure the best deal. Also, low switching costs mean that buyers can easily find a new supplier should one not measure up to the buyer's needs. Despite the high competition, most suppliers are financially stable. Wage costs represent a majority of supplier costs, and are under little to no threat of a sudden spike or shortfall. “As a result, buyers do not need to worry about a supplier suddenly going bankrupt, forcing another supplier search,” says Schmidt.
Suppliers retain significant power in the market, though, as indicated by the steadily rising price. Increased demand for executive search services has caused the price to rise in the three years to 2014 and is expected to lead to further price increases in the three years to 2017. The rising price undermines buyer power, because it means time is not on their side. They must purchase soon or face higher prices in the future. In addition, the moderate level of product specialization reduces the high level of supplier competition somewhat because their bids are not completely comparable to one another. Major vendors include Adecco SA, Allegis Group Services, Hay Group and Kelly Services Inc. For more information, visit IBISWorld’s Executive Search Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of executive search services. Suppliers provide search, recruitment and placement services for clients with specific executive and senior management requirements. Suppliers identify, research, screen and interview candidates. They also verify candidate qualifications and assist in final offer negotiations and assimilation of selected candidates.
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.