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SAP AG (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

SAP AG

SAP is engaged in selling licenses for software solutions and related support services. In addition, the company offers consulting, training and other services for its software solutions. The company primarily operates in Germany and the US. It is headquartered in Walldorf, Germany and employs 51,536 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Focus on research and development
  • Diversified geographical spread
  • Strong position in business software

Weaknesses

  • Lack of diversification
  • Declining margins

External

Opportunities

  • Strategic partnerships
  • Growing business intelligence platform market
  • Growing SaaS market

Threats

  • Global economic slowdown
  • Foreign currency risks Regulations
  • Undetected product errors and security shortcomings
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