SAP (NYSE: SAP) has set its sights on the retail sector as a growth opportunity within the company's new multi-country Latin American division (MCLA), the unit's director Fernando Rubio told BNamericas.
Rubio assumed the new position when SAP formed the MCLA unit at the beginning of October, with the goal of improving customer service. Previously the executive served as SAP's Andean and Caribbean general director.
SAP is confident it can increase market penetration in the retail industry because of the firm's knowledge of the sector and wide product offering, Rubio said, adding that the ongoing economic crisis was creating an opportunity for the company to better extend its reach in industries including retail.
"In moments like these, companies are looking to reduce costs, reevaluate their investments, and also examine how to increase their market share," he said. "Our solutions can help those companies respond to these needs by becoming more efficient, productive, and competitive."
Geographically, Rubio sees demand in Chile, Colombia, and Peru increasing most rapidly, adding that Latin America as a whole represents one of SAP's fastest growing geographic regions. Overall, he expects sales in the division to increase 30% this year, compared to when the division was divided into the Southern Cone and Andean-Caribbean units.
The executive said MCLA would also be looking to increase SME sales with its new online solution "Business All-in-One Fast-Start." The program, which was released earlier this year in Argentina, Brazil, Mexico, Chile, and Peru, allows SMEs to configure their SAP online solutions, obtain implementation cost estimates, and finally implement the solution via internet.
Rubio said that 52% of MCLA's sales were currently generated by SMEs, but added that the current economic situation made it difficult to project how that percentage would change next year.
Globally, SAP posted net profits of 388mn euros (US$487mn) in the third quarter this year, a 5% decrease compared to the 408mn euros reported in 3Q07.
Revenues increased 14% to 2.76bn euros compared to 2.42bn euros in the year-ago period. Software and software related service revenues for Q3 were 1.99bn euros, up 15% year-on-year.
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