Prices for project management software will increase slightly due to heightened demand
Los Angeles, CA (PRWEB) June 29, 2014
Project management software has a buyer power score of 4.0 out of 5. This score reflects favorable market conditions for buyers due to stable prices and low market risks. Still, buyer negotiating power is restrained by moderate market share concentration and high switching costs.
Recent pricing trends have been beneficial to buyers in the three years to 2014, according to IBISWorld analyst Andrew Yang. Although prices have increased slightly, the increase has been mitigated by several factors. Many other software applications can act as substitutes for project management software. Suppliers cannot raise prices too high or they risk losing buyers to these substitute applications. Furthermore, project management software is still in the growth stage of the product life cycle. Suppliers are inclined to keep prices low to encourage buyers to try out their product. Due to increased demand, prices are forecast to continue rising slowly in the three years to 2017, but will remain relatively stable. Stable prices are beneficial for buyers because they allow buyers to better plan their budgets and manage their costs. Buyers can take their time in evaluating vendors because they do not have to worry about prices rising significantly.
Buyers also benefit from very low market risks. Project management software vendors are not dependent on any inputs that may result in supply disruptions or price shocks. “Because the average vendor is financially stable, there is low risk of bankruptcy,” says Yang. “Low market risks benefit buyers by ensuring that vendors can provide steady access to project management software.” Current major vendors include Oracle, Microsoft, Planview and CA Technologies.
Buyer negotiating power is lowered by moderate market share concentration and high switching costs. Project management software is relatively new and buyers tend to purchase this software from software corporations with established brand names. High market share concentration is negative for buyers because vendors will have increased leverage in setting prices. Buyers of project management software also face high switching costs, meaning that buyers cannot easily switch to other vendors and may end up locked in with a supplier. For more information, visit IBISWorld’s Project Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of project management software (also known as portfolio project management software). Project management software is designed to help track and manage projects from conception to execution. Project management software comes with many tools and features used to manage budgets, assign tasks, allocate resources, and allow collaboration and documentation. This report focuses on Software as a Service (SaaS) project management software, where the software is accessed through the internet and cloud-computing infrastructure.
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.