Growth in technological integration among businesses has prompted suppliers to raise prices
Los Angeles, CA (PRWEB) February 03, 2015
Web content management software has a buyer power score of 4.2 out of 5, reflecting strong negotiation power for buyers. According to IBISWorld analyst Andrew Krabeepetcharat, demand for software has been growing steadily in the past three years as more buyers have sought ways to integrate the internet into their business operations. As a result of increasing demand, suppliers have raised prices during the past three years, hurting buyer power. However, growing competition in the market has mitigated price growth. Due to low barriers to entry, new vendors have been hastily entering the market, increasing competitive pressure on existing suppliers. Major suppliers in the market include International Business Machines Corporation, Microsoft Corporation and Google Inc. Furthermore, low price volatility during the past three years has created a more stable purchasing environment, which has allowed buyers to more accurately plan for future expenses due to a reduced likelihood of price spikes.
Buyers also benefit from a low level of product specialization. Although buyers purchase web content management software to manage and customize their websites, there are generally few customization options available for the software itself, continues Krabeepetcharat. In general, suppliers offer web content management software in several tiered subscription models that offer varying levels of functionality and capacity. Additionally, buyers generally do not need to make substantial investments in new IT equipment because the software can be used on almost any web-connected computer.
However, high switching costs have the potential to lock buyers in with an unsatisfactory supplier following the creation of the website. Due to the proprietary web development tools used, buyers face difficulties when switching to a new supplier. Buyers must recreate their entire website using the new supplier's templates if they decide to switch to a new vendor. Consequently, buyers should carefully evaluate the features and pricing of a supplier before entering into a long-term contract. For more information, visit IBISWorld’s Web Content Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of web content management software. Using a software-as-a-service (SaaS) model, suppliers provide online solutions for businesses to create websites using browser-based web development tools and templates. The software helps users that are unfamiliar with programming language manage website content through easy-to-use online tools. Suppliers include software publishers and multiline vendors that offer a variety of IT solutions. This report does not cover professional website design services or related services such as site maintenance and content creation.
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.