Healthcare reform provisions intended to enhance wellness programs will support demand and price growth during the three years to 2017
Los Angeles, California (PRWEB) February 06, 2015
Corporate wellness services have a buyer power score of 3.9 out of 5, reflecting favorable conditions in the market that have bolstered buyer in power in the three years to 2014. According to IBISWorld market research analyst, Anna Son, "Although prices for wellness programs have risen during the period, the increase has been marginal." Also, price volatility has been extremely low due to intense market competition and suppliers' stable operating costs. Buyers benefit from low price volatility because it means they can take their time making purchasing decisions without fear of severe price spikes in the near future. During the three years to 2017, prices are forecast to continue to rise primarily on the back of swelling demand for corporate wellness services as more businesses seek to integrate health and wellness programs into their operations as a means of improving their workers' health. In light of steadily rising prices, buyers should consider locking in prices sooner than later.
Fortunately for buyers, market fragmentation and intense competition have boosted their negotiation leverage. "Most firms are small in size, and the investment needed to provide corporate wellness services is low, making it easier for companies to enter the market," says Son. Buyers benefit from the continuous entrance of new players and low market share concentration, which warrants strong competition among suppliers in terms of price and service quality. New suppliers are likely to offer services at more competitive prices to win business, thus spurring more aggressive price competition. Major vendors in the market include Health Fitness, MediFit and Optum.
However, medium product specialization and switching costs somewhat limit buyer power. Suppliers typically tailor wellness programs to individual clients' needs because each business has its own challenges, culture and goals. Fortunately, buyers should not have to worry about finding a supplier that can fulfill their needs because there is a large pool of providers to select from. Additionally, there are many alternative ways of implementing wellness programs, such as establishing in-house wellness program departments, providing buyers with more flexibility during the purchasing process. Buyers can leverage this versatility when negotiating prices. For more information, visit IBISWorld’s Corporate Wellness Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of corporate wellness services. Suppliers create educational and organizational programs that help businesses foster workplace practices that support the health and well-being of employees. By helping to increase the health of their employees, businesses can save on costs associated with problems such as employee stress, illness or obesity. Consultants typically work alongside business owners to design corporate wellness services. This report does not include programs designed by internal human resources departments.
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.