Los Angeles, CA (PRWEB) February 22, 2015
The television market has a buyer power score of 4.0 out of 5, indicating that buyers have the upper hand in negotiations. Television suppliers face a strong external competitive threat from computer, mobile device and projector manufacturers, particularly as more buyers stream media content online. “This competitive threat has caused a decline in television demand during the past three years. Meanwhile, rising process automation within the television manufacturing market and falling semiconductor prices have lowered the cost of television production. In turn, suppliers have gained price flexibility,” according to IBISWorld business research analyst Daniel Krohn. Together, these trends have encouraged price declines, thereby boosting buyer power.
Television buyers also face low switching costs, which improves their leverage with suppliers. Televisions are moderately standardized, which makes the television market relatively easy to navigate. Moreover, buying lead times are short, typically lasting no more than a month. Buyers, in turn, devote minimal time and resources to procurement. “Furthermore, complementary equipment is generally compatible with most televisions on the market and, as such, buyers are not required to replace this equipment when changing vendors,” Krohn says. These benefits make it easy and inexpensive to switch suppliers, forcing vendors to compete heavily to retain their market share.
Nonetheless, recent trends in discretionary spending and high market share concentration within the television market have curbed buyer power growth. During the past three years, corporate profit and consumer confidence have grown and increased the ability and willingness of many key buyers to spend on discretionary items, such as televisions. In turn, the pool of potential television buyers has widened, which has offset recent demand declines. Meanwhile, high barriers to entry have allowed top-tier suppliers (Amazon, Samsung, Walmart and Best Buy) to dominate the market and maintain substantial pricing power. Together, these trends have tempered recent price declines and reduced the benefits of delaying procurement. For more information, visit IBISWorld’s Televisions procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of televisions, which are electronic devices that display visual media. Televisions allow users to access and view media content delivered from computers, stored to discs or distributed via subscription services. This report excludes projectors, mobile devices and computer panels.
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.