The price of crisis management services has been growing, primarily due to rebounding corporate profit
Los Angeles, CA (PRWEB) November 26, 2014
Crisis management services have a buyer power score of 3.0 out of 5, reflective of moderate buyer negotiation power. According to IBISWorld analyst Agiimaa Kruchkin, the purchasing conditions in this market are shaped by opposite extremes; on one hand, low supply chain risk, short buying lead times and high market fragmentation facilitate buyer power. However, significant switching costs, high specialization and a low availability of substitutes restrict negotiation power. Combined, these trends result in a healthy level of buyer power.
In the three years to 2014, the price of crisis management solutions is anticipated to be rising moderately, which is harmful to buyers. Fortunately, low price volatility somewhat counteracts the impact of increasing service prices. Despite expanding prices, demand remains high due to the significance of these services to buyers' overall operations, continues Kruchkin. Demand for crisis management solutions has been strengthening over the past three years, primarily fueled by rising levels of corporate profit and total advertising expenditure. The importance of these services also shapes buying lead times (which are typically short in order to accommodate the time-sensitive nature of the services required). Furthermore, the diversity of end buyers translates into robust demand despite general macroeconomic conditions. However, high fragmentation in the market provides some relief to buyers because new suppliers offer competitive prices to stay afloat.
Alternatively, high levels of service specialization significantly reduce buyer power because every crisis is unique and requires a customized solution. The more specialized the solution, the more expensive the service is. Likewise, significant switching costs challenge buyers in this market seeking to cut spending on crisis management services. Moreover, the virtual nonexistence of substitute services also mitigates buyer power. The only viable alternative to crisis management is risk management consulting, which involves identifying and mitigating risks that have the potential to evolve into large-scale crises. Major suppliers of these services include Aon PLC, IBM and PricewaterhouseCoopers. For more information, visit IBISWorld’s Crisis Management Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of crisis management services. Operators in this market assist clients during and after a crisis. Many suppliers also provide proactive crisis management services, whereby potential crises are identified ahead of time. Suppliers focus on minimizing and managing risks to clients by providing assistance with emergency response services (e.g. protection of assets and evacuation services), natural disaster response, event management (e.g. civil unrest), workforce disruption security, armed response protection, high-risk terminations, travel protection security, security threat assessments, business continuity and workplace violence. This report does not cover risk management consulting 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
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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.