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Graphics and Photo Imaging Software Procurement Category Market Research Report from IBISWorld has Been Updated(PR Web Via Acquire Media NewsEdge) Los Angeles, CA (PRWEB) July 17, 2014 Graphics and photo imaging software has a buyer power score of 4.7 out of 5, reflecting very positive purchasing conditions for buyers. In particular, buyers benefit from the availability of free open-source software alternatives, low switching costs and high profitability within the market. According to IBISWorld research analyst Daniel Krohn, "Free open-source software alternatives have applied strong external pressure on vendors selling graphics and photo imaging software, compelling them to lower their prices over the past three years." Meanwhile, buyers can switch suppliers very easily thanks to low switching costs. In turn, suppliers must actively pursue brand loyalty, granting buyers more leverage when renegotiating contractual terms. Also, high profit margins within the market give suppliers a substantial amount of price flexibility, providing buyers additional opportunities to negotiate price discounts. Nonetheless, a variety of factors have mildly hampered buyer power. Rising corporate profit, consumer spending and private investment in computers, software and advertising have generated strong demand for graphics and photo imaging solutions, says Krohn, which allows suppliers to push prices upward. Furthermore, top-tier suppliers have strong brand-name appeal, which they can use to attract and retain customers, also reducing their need to resort to price competition. Together, these factors have offset rising competition in the market. Current major vendors include Adobe Systems, Platinum Equity and Autodesk. Software publishers are transitioning toward a subscription pricing model that may benefit some buyers, while increasing the total cost of ownership for others. Purchases of perpetual licenses have high upfront costs and are best for users that do not plan on upgrading their software often. The subscription model benefits users that do upgrade with each new software release, use multiple related products or prefer lower upfront costs. Because subscription pricing requires continuous payments, the long-term total cost of ownership can be higher. However, the shift toward subscription pricing is expected to reduce costs in the short term because of its lower initial cost. For more information, visit IBISWorld's Graphics and Photo Imaging Software procurement category market research report page. Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189 IBISWorld Procurement Report Key Topics This report is intended to assist buyers of graphics and photo imaging software, with a focus on desktop applications. This software is used for image editing, photo retouching, graphic design, illustrations and other visual media. However, this report does not include video editing, web design, desktop publishing or computer-aided design software. Suppliers include retailers and value-added resellers, and buyers can also purchase licenses directly from software publishers. 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. Read the full story at http://www.prweb.com/releases/2014/07/prweb12028774.htm (c) 2014 PRWEB.COM Newswire |