Price growth will slow as recent bursts in the number of broadband connections subside.
Los Angeles, CA (PRWEB) July 17, 2014
Network planning and design services have a buyer power score of 2.8, reflecting moderately positive negotiating conditions for buyers. Thanks to low up-front capital requirements, a large number of suppliers have been able to enter and compete within the network planning and design market. In turn, market concentration has remained very low, affording buyers a plethora of suppliers, each of which wields comparable leverage to one another. Furthermore, thanks to low geographic barriers, buyers are able to access virtually any supplier. According to IBISWorld procurement analyst Daniel Krohn, “A large number of suppliers, low market concentration and minimal geographic barriers provide buyers the opportunity to source multiple bids and shop around for the best deal, thereby boosting their buyer power.”
Buyers also benefit from low supply chain risk. Vendors of network planning and design services rely primarily on inputs related to telecommunications, computers and computer software. Over the past three years, these markets have provided steady supply streams and stable prices. “In turn, this factor has helped mitigate vendor financial risk and price volatility within the network planning and design market,” says Krohn.
Nonetheless, a variety of factors have hampered buyer power. Rising corporate profit and internet adoption have given companies more money and incentive to invest in their networks, causing the demand for network planning and design to flourish. Demand growth, in turn, has driven up prices substantially over the past three years and, as such, has been a great detriment to buyers. Furthermore, network planning and design is a highly specialized service. Therefore, buyers must devote considerable time to researching appropriate suppliers. Furthermore, because of the level of specialization, not all suppliers satisfy each buyer's particular requirements. Therefore, high specialization within this market adds to the costs of procurement while limiting the number of viable suppliers from which buyers can source bids. The top four vendors in the market are Hewlett-Packard Development, IBM, Cisco Systems and NEC.
For more information, visit IBISWorld’s Network Planning and Design Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of network planning and design services. Network planning and design services include the gathering of network requirements, network architecture selection, detailed network analysis and design, product and technology recommendations, and license coordination. This report excludes networks hosted on the supplier's premises and any network management services provided after the design is implemented.
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.