Prices are forecast to fall further over the next three years as a result of competitive pressure in the market, but this decline will continue to be marginal due to increasing demand
Los Angeles, CA (PRWEB) March 14, 2015
Asset tracking software has a buyer power score of 4.3 out of 5. “This score reflects strong negotiating power for buyers stemming from declining prices and heavy competition among suppliers,” according to IBISWorld business research analyst Cameron Roark. However, moderate switching costs and limited substitutes hamper buyer negotiation power.
Competition in the asset tracking software market has been the primary driver of price declines over the past three years. Vendors in this market either compete through innovation or through pricing. Vendors that compete through innovation maintain quality research and development (R&D) departments to expand the capabilities and improve the quality of software. However, technological innovation comes at a price and limits the price flexibility of the vendors that employ it. Other suppliers in the market that lack the resources to compete on innovation compete through pricing instead, providing software that is not as technologically advanced at a lower price. “Buyers benefit from this market characteristic because it gives them a broad range of options and price points to accommodate their needs,” says Roark.
However, some market characteristics are detrimental to buyer power. Buyers face moderate switching costs because many vendors integrate their asset tracking software with the buyer's existing infrastructure, which can be timely and costly to remove or replace. The downtime while switching vendors can also make it difficult to track assets and perform accurate audits. Additionally, a low availability of substitutes hurts buyer power because the lack of external competition limits downward pressure on prices.
Despite these factors, continuously falling prices and low price volatility give buyers the option of waiting to purchase asset tracking software without fear that prices will swing significantly and will decrease further in the coming years. Moreover, asset tracking software developers are constantly adding features to improve performance and expand functionality. Consequently, buyers can benefit from waiting to purchase the software because it will likely have more capabilities and perform better over the next three years. Major vendors include RedBeam, IBM and Oracle. For more information, visit IBISWorld’s Asset Tracking Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of asset tracking software. This software tracks and manages the location of valuable assets, such as software, hardware, tools and more, through barcode scanning. Asset tracking software is used by logistics, delivery and inventory-intensive companies, such as large conglomerates, to meet audit requirements and avoid insurance and property taxes on assets that have been lost, stolen or retired. Asset tracking software collects data, typically through barcodes, and records the information in a database, which can then be used to provide a variety of reports and detailed information regarding the movement of the item. This report does not include asset management software, IT asset recovery services or shipment 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.