Despite rising input costs, slow demand will encourage suppliers to keep prices fairly stable
Los Angeles, CA (PRWEB) October 19, 2014
Computer keyboards have a buyer power score of 4.1 out of 5, indicating that buyers are in a very strong position in their negotiations with suppliers. This score reflects favorable price trends and market structure for buyers, although buyer power is lowered slightly by market risks. Computer keyboards are standardized, with few differences between various suppliers. As such, competition is mostly price based, meaning that suppliers are motivated to lower prices to win over customers. This factor has kept prices fairly stable in the three years to 2014, despite rising input costs. In the three years to 2017, prices are expected to remain stable, benefiting buyers. “Price stability is due to stabilizing input costs, continued market competition and increasingly available substitutes,” according to IBISWorld business research analyst, Andrew Yang.
Overall market risk is fairly low, indicating that buyers do not have to worry about supply disruption due to supplier financial hardship or bankruptcy. The greatest risk comes from the volatility of input material costs required to manufacture computer keyboards. Computer keyboards are primarily made out of plastic. While this material is readily sourced from suppliers all over the world, its price has experienced significant fluctuation during the past three years. The high volatility in plastic prices contributes to a higher risk of price fluctuations for computer keyboards. Plastic prices are expected to grow in the three years to 2017, which may squeeze profit margins for suppliers and hurt buyer power.
Alternatively, the market structure is favorable for buyers. “Market share concentration is very low, indicating that the largest suppliers do not control a significant percentage of the market by revenue,” says Yang. In addition, there are minimal penalties or consequences when switching from one supplier to another, benefiting buyers. These two factors aid buyers because they therefore have a wide variety of suppliers to select from and will not be locked in with any particular supplier. If a supplier raises their prices or delivers a poor quality product, buyers can easily find and switch to another supplier to receive more competitive prices or better quality goods. Major vendors include Microsoft Corporation, Toshiba and Hewlett-Packard Development Company LP. For more information, visit IBISWorld’s Computer Keyboards procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of computer keyboards, which are computer peripheral devices with an arrangement of buttons and keys. They are the most common device used to input data into computers. This report excludes alternative input devices such as computer mice, touchscreens, and character and voice recognition devices. This report also excludes keyboards in laptops and mobile devices.
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
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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.