SWOT Analysis On SAP
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