Sap Analysis

Company Background

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Five people from former IBM employees founded SAP in 1972, after they were working on a project that was cancelled after from IBM company, they decided to scream a new company to complete this project.

SAP is a German-based multinational B to B company, known for providing software solutions like the Enterprise Resource Planning from that allows businesses to run and manage all of their departments’ business processes. It also ensures and help the traffic of data within the company to facilitate coordination and thus promote productivity and efficiency. In a nutshell, SAP’s software solutions aim to make running and managing businesses easy and efficient.

SAP’s innovations are not only concerned with the economic wellbeing of its customers, they also place great emphasis on providing social and environmental solutions for societies.

The German company first went public in 2007, and now is a member of the fortune global 500 list. In 2016, SAP had more than 335 000 clients in 190 countries. More than three quarters of SAP’s customers are small and medium companies. And according to the company, three quarters of transactions are in contact within an SAP system. In fact, the society propose deployment models with computing options. SAP works for the future of its customers and is ranked on the 3rd place of the largest software and programming businesses.

SAP operates in the software industry sector. A sector known for its high returns and its vigorous competition. Up until today, as one of the market pioneers, SAP have been able to survive the monstrous industry, but without rapidly innovating and adapting to the new environment, the industry will mercilessly drag SAP out of the competition.

Competitive Strategy Analysis________________________________________

Admittedly, innovation and the ability to anticipate technological developments were the foundation of SAP's success. Nevertheless, the failures of some of its products and their implementation, as well as competition from other publishers (Oracle, Peoplesoft, Baan, etc.), show that the ability to create new products has not Been sufficient to consolidate the existing business ecosystem, or to maintain it as a leader. Successful companies are those that innovate, but innovation doesn't just lie in the continuous creation of new products and services. To grow, whether it is to develop skills or create new markets, Joining other organizations to create value. Businesses must therefore build economic communities based on inter-firm synergies With different partners to build their business ecosystem. Thus, SAP's innovation has mainly been in the choice of alliances, which are based on three types of partnerships: partnerships with customers (vertical relationships),

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