Price growth will slow as the swelling of mobile internet connections and percentage of services conducted online are subdued
Los Angeles, CA (PRWEB) October 10, 2014
MEAPs have a buyer power score of 3.5 out of 5. This score reflects moderately positive negotiation conditions for buyers, which result from suppliers' falling input costs and rising competition within the market. As software publishing has become more efficient in recent years, software prices have dropped substantially. Falling software prices have, in turn, helped suppliers within the MEAP market maintain low operating costs. Faced with low operating costs, the pressure on suppliers to raise their prices to maintain profit margins is alleviated. Meanwhile, low barriers to entry have allowed new suppliers to continually enter the market, which has provided buyers a rising number of supplier options. “This influx of new suppliers has boosted buyer leverage and has helped maintain strong competition in the market,” according to IBISWorld business research analyst Daniel Krohn.
Nonetheless, prices are growing within the MEAP market, and several factors are limiting buyer power. Business growth, mobile internet adoption and a rising shift in services online have generated strong demand growth within the MEAP market. This demand growth has afforded suppliers some pricing power, which has allowed them to raise their prices marginally to capture larger profit. Furthermore, there are few available substitutes, and switching costs within the MEAP market are high. “Together, these factors further alleviate competitive pressures within the market and hurt buyer power,” says Krohn.
The size of the supplier can affect a buyer's negotiating power. The four largest service providers control a substantial portion of the market's revenue, which leaves a plethora of small vendors vying for a small portion of the remaining market share. As such, larger vendors have substantially more power and less incentive to negotiate than smaller firms, which thereby limits a buyer's leverage with them. Although there are benefits to selecting a larger vendor, buyers should weigh these benefits against the costs to their buyer power. Major vendors include Antenna Software Inc., SAP SE and IBM. For more information, visit IBISWorld’s Mobile Enterprise Application Platforms procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of mobile enterprise application platforms (MEAPs). MEAPs combine software and services to create a computer infrastructure allowing buyers to extend apps, messaging and data out to employee or customer mobile devices. MEAPs serve as a solution for integrating multiple mobile applications, operating systems and data sources into a single back-end system. Although MEAPs can come in standard prepackaged or cloud-based varieties, most buyers will require a customized platform to fit their specific mobile network configurations and needs. Vendors providing point-to-point mobile solutions are excluded from this report.
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.