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SWOT Analysis On SAP

SAP has strengths including the largest number of functional modules across 20 industries and the highest research and development budget of any ERP vendor. However, SAP solutions do not address all companies and can be difficult and expensive to implement. Opportunities for SAP include leveraging their market position in e-commerce and acquisitions, while threats include cheaper niche solutions and economic slowdowns reducing technology spending.

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Abhijat Bharadwaj
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3K views7 pages

SWOT Analysis On SAP

SAP has strengths including the largest number of functional modules across 20 industries and the highest research and development budget of any ERP vendor. However, SAP solutions do not address all companies and can be difficult and expensive to implement. Opportunities for SAP include leveraging their market position in e-commerce and acquisitions, while threats include cheaper niche solutions and economic slowdowns reducing technology spending.

Uploaded by

Abhijat Bharadwaj
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SWOT analysis on SAP

Strength
SAP

has the largest number of functional modules to choose from . Their modules cover a variety of 20 industries. Hence a wide range of expertise and highly adaptable solutions. SAP is developing what many consider to be post ERP applications as add-ons to their existing applications. This includes CRM (customer relations' Management),BI,SCM,SRM,ELM,PLM,EAM etc which provides greater flexibility and fills the gap for a best of breed approach. They have the highest development and research budget than any other ERP vendors.

Strength Ctd..
Prominent market position Extensive geographic presence

Weakness

SAP's solutions do not provide solutions for all companies and claims that companies who provide more specialised solutions offer better value for money. SAP contracts are often delivered over time and over budget due to the difficulty in installing such complex systems in enterprises SME's may feel besieged with the choice of modules and possible solutions. SAP has been slow to offer compact and more realistic solutions for SME's. Lack of existing focus towards SME's.

Weakness Ctd
Expensive Complicated to implement

Opportunities
A trend towards e-commerce, netcentric computing through implementations of XML, ASP, Java. Strategic acquisitions( SAP acquired business objects). Ability to leverage market position Move into web bases SaaS model

Threats

Targeted or niche solutions often provide better capabilities and are much less expensive Newer entrants can leverage web 2.0 technologies to integrate with other solutions, making a huge ERP system less of a necessity Companies cutting back on technology expenses Economic slowdown Undetected security flaws and product defects Exchange rate fluctuations

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