1. Product line extension - Situation analysis forSAP Apparel Enterprise Resource Planning
By
ThejaWickramanayake
A4019790

2. SAP COMPANY PORTRAIT
Founded in 1972 in Mannheim, Germany as SystemsApplications andProducts in Data Processing
Today, as one of the world leaders of business software, SAP holds sales and development locations in more than50countries worldwide
Core business of SAP is selling licenses for software solutions and related services.
The solutions cover standard business applications and technologies as well as industry specific customised applications
3. PRODUCT
Apparel industry consists of makers and sellers of fashionable clothing.
Apparel manufacturing specific Enterprise Resource Planning solution SAP AFS
Handles massive volume of information generated in Fashion/ Apparel value chain.
4. PRODUCT EXTENSION
Target Industry - Buying groups of the Apparel Clothing Industry
These buying offices purchase clothing and accessories for apparel retailers. They analyze trends, needs and budgets of their customers to purchase fashions that at a price that their target customers want to pay by working as middlemen
Target Industry
5. PRODUCT EXTENSION
Solution
Extended solution is a Buying office activity planning tool
Named as SAP PLANNER ABO
Consists of three main components
Order Planning
Time & Action Planning
MRP (Materials Requirements Planning)
This makes SAP a business systems manufacturer for overall fashion value chain.
6. SETTING THE STAGE
THE SITUATION ANALYSIS
7. Environment
SAP is currently conducting their businesses in an increasingly globalised business environment
Changing corporate governance law, reporting regulations and pressure of competitors
Current economy Slow down in the market.
Different social backgrounds.
Emerging IT trends and breakthrough technologies
8. MARKETING STRATEGY
SAPs business growth consists of three areas
The most innovative software organisation
Co- innovation by collaborating with customers and partners
Gain specific technologies and capabilities
SAP uses Product Differentiation strategy to gain Competitive Advantage and Growth Strategy for Capabilities.
9. BRANDS CURRENT POSITION
SWOT
TARGET CUSTOMER PROFILE
10. SWOT
Strengths
Competitive advantage through innovation
Research and development capabilities
Specialized & carefully chosen professional team
Customer loyalty and reputation during the past
Diversified and geographically spread partners and branches
11. SWOT

Weaknesses

Slightly expensive than its competitors
Complicated implementation process
Change management

Opportunities

Every implementation leads to strategic partnerships with the customers
12. SWOT

Threats

Global economic downturn
Foreign currency risk and regulations
Less expensive niche competitors with competitive products
Undetected product errors (Even after tests are performed)
13. Target Customer Profile
Who Businesses with information management needs.
What Enterprise Resource Planning solution.
Where - Asia-Pacific region, American and the European regions.
Why - To manage and interpret the massive volume of information generated in today's dynamic businesses.
How Implementation and development through SAP global services partner companies
14. Thank you.