Los Angeles, CA (PRWEB) February 09, 2015 -- Satellite and earth communication systems services have a buyer power score of 4.3 out of 5. This score reflects a positive purchasing environment for buyers, primarily stemming from falling service prices and low price volatility. In the three years to 2014, service prices have decreased due to the technological improvements in satellite communication systems and consistently declining costs for inputs such as semiconductors and other electronic components, says IBISWorld analyst Deonta Smith. Moreover, major suppliers have invested heavily in research and development (R&D) to improve the performance of satellite communication technology and to make it more cost effective. In particular, large vendors have made substantial investments in R&D as they strive to offer the highest-quality services at competitive prices to increase their market share, which in turn benefits buyers.
Over the next three years, prices are expected to continue declining as satellite communication technology improves. At the same time, prices for inputs such as semiconductors and electronic components will continue to fall, prompting satellite communication service providers to reduce prices further to compete, continues Smith. Declining input prices are expected to reduce operating costs for suppliers, which will be passed onto buyers in the form of lower service prices. However, price reductions will be limited by rising demand for satellite communication services.
In spite of overall high buyer power, some factors limit a buyer's ability to negotiate. For example, market share concentration is moderate due to the significant level of capital investments required to enter the market. Thus, buyer power is harmed because supplier options are limited. Moderate switching costs also limit buyer power; buyers looking to switch suppliers may face early termination fees. For more information, visit IBISWorld’s Satellite & Earth Communication Systems Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of satellite and earth communication systems services. Suppliers in this market provide telecommunications connections (e.g. navigation, VoIP and SMS) via satellite for consumers and businesses that do not have access to wired or cellular networks. The services are offered through large companies, as well as small-size resellers that make satellite communication systems available to buyers. Buyers include businesses operating abroad and the government, including military agencies. This report does not include direct-to-home satellite television services.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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