Los Angeles, CA (PRWEB) July 28, 2014
PBX phone systems have a buyer power score of 4.4 out of 5, reflecting highly favorable market conditions for buyers. Factors increasing buyer power include declining prices, a wide variety of substitutes, little product specialization, low switching costs and minimal price volatility. “Thanks to these factors, the market is in prime condition for buyers to negotiate lower prices on PBX systems,” says IBISWorld research analyst Andrew Krabeepetcharat.
Competition within the market greatly benefits buyers of PBX phone systems. Although there is a moderate level of market share concentration, price-based competition is high, primarily due to low-cost foreign competitors. According to Krabeepetcharat, products are fairly standardized, increasing competition further because products across most brands are comparable and the cost of switching suppliers is very low. Also contributing to the high degree of competition is the wide variety of substitutes available to buyers, including landlines and hosted PBX services and free open-source PBX software.
The only significant detractions from buyer power are the moderate levels of supply chain risk and vendor financial risk associated with PBX systems. This risk primarily stems from the small number of input suppliers. Low profit margins within the market have spurred significant merger, acquisition and bankruptcy activity in recent years, contributing to higher vendor financial risk and negatively impacting buyers. Current major vendors include Alcatel-Lucent, Cisco Systems, Panasonic Corp. and Toshiba.
Prices are anticipated to continue falling at a slow and steady rate through 2017 with very low price volatility. Low volatility is positive for buyer power because it helps buyers accurately budget for a PBX purchase without the risk of price spikes. For more information, visit IBISWorld’s PBX Phone Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of private branch exchange (PBX) phone systems. A PBX system is a telephone switching system that creates a private telephone network within a company. PBX systems allow for the sharing of telephone lines to make outside calls. A PBX automatically routes incoming calls to specific extensions. PBX systems may operate using traditional phone lines or the internet (IP PBX). PBX systems generally include internal and external phone lines and a computer server to manage call switching and routing. This report excludes hosted and open-source PBX services.
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.