SWOT-MATRIX ANALYSIS:
STRENGTHS:
OPPORTUNITIES:
Now the market is consolidating
and SAP need to expand its
business.
New Acquisitions (related third
party tools)
The financial position of the
company is strong and it can
enhance its business.
Expansion of Partners (globally)
Providing venture capital to
small and medium size entities
THREATS:
Oracle is the biggest threat to
SAP
With Open Source technologies
and cloud based ERP's
becoming popular
High Cost of Implementation
Rapid Change in technology
WEAKNESSES:
Highly innovative products.
Invests heavily on R&D.
Product efficiency level is high
and very useful.
Highly Customizable
Offers real-time data for user
and management
Introduces new and modern
Technology to increase its
efficiency level.
SO-STRATEGIES (maxi-max):
By increasing product portfolio
and heavy investment on R&D
lead to new acquisition and
expansion of business
(S1,S2:O1,O2)
Advancement of new
technology can make financial
position of a company by
enhancing our business (S6:O3)
ST-STRATEGIES(max-mini):
Invest heavily on R&D,
increases product innovation
and advancement of new
technology reduces competition
with Oracle and reduces threats
of open source technology
(S1,S2,S6:T1,T2)
Continuous advancement of
new technology will lead to
compete with rapid change in
technology (S6:T4)
Steep learning curves for user
ERP is the only product to be
compared with oracle products.
High Implementation Cost
WO-STRATEGIES(mini-max):
Reduce steep learning curve
through expansion of partners
globally (W1:O4)
SAP need to expand its product
portfolio by expanding its
business in order to compete
with small and medium size
entities (W2:O1)
Reduce implementation cost
through venture capital (W3:O5)
WT-STRATEGIES(mini-mini):
Reducing steep learning curves
by reducing high
implementation costs (W1:T3)
Advancing open source
technologies in ERP leads to
increase the product portfolio
with ERP (W2:T1)
 BCG-MATRIX:

HIG MEDIU LO
H M W
1.0 0.75 66.67 0.50 0.25 0.0
+2
0

4.
9
0

-
20

Division Revenues Percent Profits Percent Relative Industry

(in millions) Revenues (in millions) Profits Market Share Growth Rate
1 20800 100 3060 100 66.67% 4.9%