General presentation of the SAP Company:
SAP, which stands for ‘Système Anwendungen Produkte’, is currently the number one company worldwide in the sector of integrated software sales.More precisely, the SAP Company sells integrated software such as management software as well as maintenance software, advice and training.
SAP achieves the majority of its turnover in Germany and Middle Eastern Europe but also operates its activities in other countries worldwide with over 76,986 employees.
Know the competition to SAP shares:
The SAP Company is one of the international leaders in the creation and distribution of software and integrated software.Through the development of this sector which is experiencing high demand as well as an innovative strategy that is solid and successful SAP currently holds fourth position in the global classification of software producers and suppliers.
The SAP Company lags behind major competitors such as Microsoft, Oracle and IBM which occupy the first three places in this classification.It is then followed by companies such as Symantec, EMC, VMware, HP, SalesForce, Intuit, Adobe and Cisco.
The Oracle Group is however the greatest threat to this company at present as the activities of this group are close to those of SAP.This company also has to face the dangers inherent in Cloud and Open Source which brings it closer to competitors such as Google which could be a serious threat over the long term.
It is therefore advised that you stay informed of news and events in this sector before launching into trading in the SAP company shares and particularly taking into account information on the direct and indirect competitors as well.
Strategic alliances implemented by the SAP Group:
The SAP Group has based its development strategy on the implementation of specific partnerships with competitors or companies in related sectors.Here are a few examples:
- Pandesic: In 1997 the SAP Group joined with its competitor Intel for the implementation of a joint company named Pandesic.The latter was finally abandoned in the year 2000 due to a lack of long term profitability.
- Nokia: In 2009 SAP became a partner of Nokia for the creation of a joint company in the domain of authentication products and anti fraud services.
- IBM: In 2017 IBM and SAP announced significant investment projects in the digital transformation sector.
Introduction and quotation of the SAP shares:
The SAP share price is currently quoted on the Deutsche Boerse stock market and is also included in the calculation of the German stock market index, the DAX 30.
Stock market data
Through this article you have been able to learn certain interesting information about SAP shares including details of the activities exercised by this company and its activity sector and the historical movements in its share price over the last few years. However, to go even further and enable you to completely master this asset we offer you the opportunity now to learn other more general information which is nonetheless important relating to the SAP Company and its shares.
- In 2017, the SAP Company achieved a stock market capital of around 116,646.47 million Euros.
- The number of shares issued by the SAP Company at the same time and currently in circulation on the stock markets is 23,000,000.
- The SAP Company’s share price is currently quoted on the Prime Standard section of the Deutsche Boerse AG stock market in Germany.
- The SAP Company is also included in the composition of the national German stock market index, the DAX 30, and is therefore one of the 30 largest German companies in terms of stock market capital.
- The shareholdings in the SAP Company are as follows: 56% of shares are held by institutional investors, 41% are floating shares which are in circulation on the stock markets and 3% are held by the SAP group itself.
- The turnover of the SAP Company has continued to increase over the last few years and achieved 22,000,000 Euros in 2016.
Of course, the information that you have learned is susceptible to change over time and should therefore be verified through your broker online or directly from the company’s website before you take position.
The advantages and strengths of SAP stock as a stock market asset :
First of all, one of the main strengths of this technology company is its innovations. Most of the products offered by the group are highly innovative and therefore very attractive to the general public and meet new consumer needs.
On the other hand, the SAP Group is strongly oriented towards new innovations and is constantly seeking to develop new products and technological solutions. To this end, it invests heavily in research and development in order to stay one step ahead of its competitors and to offer effective and useful products.
The SAP group's positioning in its sector of activity is of course another undeniable strong point. The group is one of the leaders in its field and thus earns the trust of consumers and customers. This positioning has been acquired by the group largely thanks to the very high quality of its products which have made its reputation over the years.
Recently, the SAP group has also been able to seduce professionals by integrating the new version of Business Objects into its solutions on the market. As a result, professionals can now purchase SAP software and deploy it completely independently.
Finally, organizations using the SAP Business One model can help the group directly target larger companies with a minimum of 100 employees.
Disadvantages and Weaknesses of SAP as a Stock Exchange Asset :
As we have just seen, the German SAP group has the qualities necessary for its future development and this could lead you to take a bullish position on its share today. But before embarking on this strategy, you should also take the time to analyze the few flaws in this stock and the weaknesses of the group that could hinder this growth.
First of all, the SAP group is strongly threatened by very strong competition from some of its competitors. It should be noted for example that the ERP developed by SAP is currently the one and only product of the group that can be compared to the products developed by the American giant Oracle which is one of the leaders in this market.
Although the SAP group's results have improved slightly over the last few years, it has still not managed to make real progress in a truly convincing manner and therefore does not sufficiently reassure its investors and shareholders.
The SAP group must still make efforts to diversify its activities and thus protect itself against the risks of exposure to one and the same sector of activity. Indeed, its activities are very targeted and its product range is still not very varied, which could be detrimental to it in the more or less long term.