Sap AG ADRSAP

Morningstar Rating

Stock Research and Analysis

by Sunit Gogia

SAP dominates the market for enterprise resource planning software, and we expect the company to maintain its leadership position for a long time.

SAP's software provides customers with an integrated view and control over various business functions Read more

Bulls Say

SAP's large customer base coupled with the stickiness of its products serves as a bulwark against a competitive attack.

The company's expertise in developing ERP software should enable it to effectively compete and gain market share in the SMB segment.

SAP's entry into the business-intelligence market could lead to significant growth as the company sells business-intelligence software to its existing customer base. Read more

Bears Say

Oracle has acquired several erstwhile competitors of SAP and could emerge as a significant competitive force in the ERP software market.

SAP's decision to directly sell software to the SMB segment could create conflict between the company and traditional resellers of its ERP software.

Growth outside the large enterprise ERP market could come at the cost of lower margins as SAP faces intense competition in this area. Read more

Strategy

SAP continually adds new features to its applications and encourages customers to upgrade their software to take advantage of the new functionality. The company is also actively focused on gaining market Read more

Management

Henning Kagermann has been CEO since 2003, and Leo Apotheker was appointed co-CEO of the company in April 2008. Apotheker is positioned to take over as sole CEO when Kagermann leaves SAP in May 2009. We see this as a potentially significant shift from Read more

Profile

SAP is the leading provider of enterprise resource planning software. The company tailors its products to meet the unique needs of various industries and has more than 86, Read more

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