Prices are expected to continue rising over the next three years due to increased demand from businesses in a recovering economy
Los Angeles, CA (PRWEB) November 21, 2014
Legal research services have a buyer power score of 3.3 out of 5. This score indicates that buyers have a moderate amount of negotiating power due to low market share concentration, low switching costs, financially stable vendors and low price volatility. Market share concentration is low due to the high number of suppliers. Additionally, this service is in the growth phase of its life cycle, reflected by the high number of suppliers that are continuing to enter the market, helping to keep concentration low. “The low concentration helps create a high level of competition amongst suppliers, in turn making suppliers more willing to negotiate lower service prices to gain market share and benefiting buyers,” according to IBISWorld business research analyst Andrew Krabeepetcharat.
Low switching costs also help to boost buyer power. Due to the low costs associated with switching suppliers, a buyer can leverage the large number of suppliers in the market while negotiating or renewing a contract with a supplier. Furthermore, the financial stability of suppliers of legal research services increases buyer power. Because suppliers are financially stable on average, buyers do not have to worry if a supplier will go bankrupt during the course of the contract. The stability gives buyers a wide range of suppliers to choose from, helping to increase buyer power. The low price volatility also contributes to the moderate buyer power. “Buyers are not at risk for a huge spike in prices, and suppliers are more willing to negotiate a lower price over a multiyear contract knowing that prices will not jump significantly during that time,” says Krabeepetcharat.
However, rising prices have hampered buyer power. Demand for legal research services is expected to grow in the three years to 2014 because of greater downstream demand for law firms. As the number of businesses continues to grow, law firms have a greater pool of potential clients, increasing their demand. In turn, with the increased demand for law firms, lawyers will increasingly require legal research services. Additionally, the growing number of businesses will result in a greater number of in-house legal departments requiring legal research. Major vendors include CPA Global Ltd., Integreon, QuisLex and Thomson Reuters. For more information, visit IBISWorld’s Legal Research Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of legal research services. Legal research service companies engage in the process of identifying and retrieving information for legal decision making. Legal research services generally employ individuals with legal backgrounds to provide research.
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.