Sap Analysis

6736 Words Dec 12th, 2010 27 Pages
Individual Selected Case Analysis

SAP® AG

E-SOLUTIONS FOR THE NEW, NEW ECONOMY

Electronic Commerce

Management 671
Radford University
April 2001

Karl Zartarian
Individual Selected Case Analysis

SAP AG: E-SOLUTIONS FOR THE NEW, NEW ECONOMY

Contents Page

I. INTRODUCTION 3

II. DESCRIPTION OF THE COMPANY 4

III. EVOLUTION OF THE E-BUSINESS PLATFORM 6

IV. DESCRIPTION OF THE INDUSTRY 8

V. ANALYSIS OF PORTER’S FIVE FORCES 10

VI. STEEP AND SWOT ANALYSIS 12

VII. BUSINESS MODEL 16

VIII. TARGET MARKETS 17

IX. COMPANY CORE COMPETENCIES 18

X. COMPANY AND INDUSTRY FINANCIAL INFORMATION 20

XI. KEY COMPANY CHALLENGES 22

XII. PROBLEM STATEMENT 23

XIII. STRATEGIES AND RECOMMENDED ACTIONS 24

XIV. SUMMARY 27

XV. REFERENCES 28
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SAP offers front and back office software and services for rent or purchase through its mySAP.com exchange, which hosts transactions between SAP clients and their vendors. To catch up with rivals in this sector, SAP has launched a US subsidiary to build online marketplaces for large companies and their suppliers. “

HISTORY

Software engineers Hasso Plattner (co-chairman and co- chairman and co-CEO), Hans-Werner Hector, Dietmar Hopp, and Klaus Tschira started SAP in 1972 when the project they were working on for IBM was moved to another unit. The four agreed to write a program for IBM customer Imperial Chemical Industries, and SAP (named for the IBM project they left -- Systems, Applications, and Projects) was formed.

While rival software companies made many products to automate the various parts of a company's operations, these engineers decided to make a single system that would tie a corporation together. In 1973 they launched an instantaneous accounting transaction processing program called R/1. By 1981, with 200 customers already on board, they had adapted the program to create R/2, mainframe software that linked external databases and communication systems.

The company went public in 1988. That year, Plattner began a project to create software for the computer network market. In 1992, as sales of its R/2 mainframe
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