Describe the reasons that could have led SAP India to concentrate on Small and Medium Businesses

SAP India Targets Small and Medium Businesses

Describe the reasons that could have led SAP India to concentrate on Small and Medium Businesses

The caselet examines the various strategies adopted by SAP India to become the leader in the ERP systems market in India. It specifically focuses on the initiatives taken by SAP India to win over the small and medium business (SMBs) and encourage them to make use of SAP solutions. The caselet also discusses the low pricing strategy of SAP India’s ERP solutions for SMBs to counter the competition from Oracle.

Issues:

  » Identifying potential foreign markets


» Segmenting and targeting small and medium sized businesses


» Various segmentation and targeting strategies of SAP India to win over small and medium businesses in India


» SAP solutions to enhance supply chain efficiency, enhance partner collaborations and improve customer relationships


» Pricing strategy to counter competition and penetrate the target market 


» New product development and customization of software solutions


» Industry-specific partners to implement the software solution for clients

Introduction

SAP AG, headquartered in Walldorf, Germany, is the world’s largest business software company. It is the market and technology leader in client/server enterprise application software, providing comprehensive solutions for companies of all sizes and all industry sectors.       

SAP AG identified India as one of the strategic locations for its operations and started its Indian operations ‘SAP India’, headquartered in Bangalore in 1996. In 1998, it set up the first SAP Lab at Bangalore, which is SAP AG’s largest software development hub outside Germany… 

Questions for Discussion:

  1. Describe the reasons that could have led SAP India to concentrate on Small and Medium Businesses with specific reference to market potential of SMBs for ERP solutions in India.

  2. Discuss the different strategies adopted by SAP India to become the major player in providing software solutions to Small and Medium Businesses.

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