Increasing overhead costs are likely to be passed on to buyers and prices for criminal law services are anticipated to continue growing
Los Angeles, CA (PRWEB) August 17, 2014
Criminal law services have a buyer power score of 2.6 out of 5, which represents moderate buyer power. The low market share concentration of vendors, which allows buyers to shop around for the best terms, supports buyer power. There are more than 52,000 firms providing criminal law services in the United States, giving buyers a wide selection of suppliers. “Additionally, each individual supplier is at low risk of bankruptcy or service interruptions; demand for this market is steady and high, providing financial security to most suppliers,” says IBISWorld business research analyst Pierre Dessertenne.
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 from year to year. As such, buyers can forecast their criminal law service budgets more easily.
However, there are several factors limiting buyer power. 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 makes switching costs very high. Changing suppliers is costly in terms of time, money and potential effectiveness of the service. “Suppliers that have had interaction with a client over time will be more effective in their task as they will have more information available to establish strategies,” says Dessertenne.
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. IBISWorld advises buyers to minimize their criminal law service procurement risk by creating a short list of potential suppliers ahead of time or selecting a law firm to have on retainer, depending on exposure to litigation risk. Major vendors include Akerman LLP, Baker & McKenzie and Baker Botts LLP. 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.
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.