Despite rising demand for risk management software, prices have declined in the three years to 2014 due to intense competition and the high number of available substitutes in the market
Los Angeles, CA (PRWEB) February 25, 2015
Risk management software has a buyer power score of 4.5 out of 5, reflecting positive negotiating conditions for buyers. Buyers have benefited from intense competition, the wide range of available substitutes and declining prices. However, moderate supply chain risk and switching costs have slightly impaired buyer power.
Buyers derive most of their power from the high level of competition in the risk management software market. Vendors in this market compete either on the basis of innovation or pricing, both of which benefit buyers. Some of the largest vendors in this market are IBM, Hewlett-Packard, SAP and SAS. Vendors that compete on the basis of innovation maintain quality research and development (R&D) departments that look to improve a variety of factors by expanding software features and increasing product quality. However, maintaining this level of technological innovation has a price and can constrain the price flexibility of vendors that do so. “Other vendors that lack the resources to compete on the basis of innovation instead compete on price, providing software that is not as updated but costs less. As a result, while some suppliers compete by constantly innovating, many others look to retain market share by decreasing their prices; in either case, buyers benefit from market competition,” according to IBISWorld business research analyst Cameron Roark.
Not all market characteristics, however, benefit buyer power. “There are moderate levels of both supply chain and average vendor risk in the market. Risk in the supply chain originates from upstream suppliers that, themselves, face issues that threaten their stability, such as the growing threat that imports pose to computer manufacturers,” Roark says. Moreover, moderate switching costs, mostly due to the costs associated with integrating software with existing IT infrastructure or other applications, make it difficult for buyers to switch between different risk management programs. For more information, visit IBISWorld’s Risk 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 risk management software. Companies can use this software to identify, evaluate, monitor and minimize risks to their operations. By managing risks to the company, buyers can preserve assets and provide stability to their operations. Risks are generally analyzed to determine their potential impact and the likelihood that they will occur. The software operates by pulling data from a variety of sources, including financial, geographical, technological, political and project-specific information stores, to provide risk assessments on a number of issues, including financial stability, cyber security and legal liabilities. This report does not include risk management consulting, insurance services or compliance management software.
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.