Sas Institute Term Paper

Topics: Computer software, Privately held company, Public company Pages: 14 (4382 words) Published: August 1, 2010
Executive Summary:
SAS is a recognized company that creates business analyst software for all types of businesses. The acronym SAS stands for “statistical analysis system.” It was created at North Carolina State University as a project to analyze agricultural research. SAS’s founder decided to transform this research project into a viable company of its own, where he could provide business consulting services to large and small businesses alike. Shortly after becoming a company they were able to run software applications across all platforms of the business by using multivendor architecture for which it is known today for. SAS’s internal culture has remained the same since it first started, which has made them successful enough to spread their products and services across the globe in just a few years.

SAS’s mission and vision statement run parallel to each other. Their mission is to deliver proven solutions that drive innovation and improve performance. The company’s vision is to transform the way the world works, by giving people THE POWER TO KNOW. Like any other company created, they have values that are incorporated in all company relationships, from long-standing engagements to the strong and focused employee community. Those values include being approachable, customer-driven, swift and agile, innovative, and trustworthy. The values, mission, and vision statement, create a positive internal corporate culture across the firm. SAS believes in a healthy workplace environment along with a healthy work-life balance. By providing such a workplace, focusing on people and relationships has led SAS to be more productive, have highly satisfied customers, and more dedicated employees. Also along with SAS’s corporate culture, they are committed to Corporate Social Responsibility which is embedded into their environment.

SAS is successful because they provide their employees with great benefits which keep them motivated to provide great work for their customers. Reasons for this are: one, they are an innovative company, and two, they care about their employees. By keeping your employees motivated and happy, they stay innovative and they work harder to achieve what their customers are looking for in business analyst software. However, though SAS’s employees play a large part in its prosperity, their success is not due to only their employees. We propose that SAS is successful because of a perfect balance between employees, economic value added applications available to their customers, and a strong sense of corporate culture among stakeholders. These combined are the reason they are as successful as they are.

SAS has a strong competitive advantage over its rivals. First, SAS is a private corporation, meaning that it can guard itself to a certain degree. For example, private corporations are not required to publish an earnings report to shareholders, because there are no shareholders. All of the company’s financial information is internal. Secondly, SAS has incredible resource capital for design and development of additional products. That combined with innovative employees is a significant competitive advantage.

We will briefly discuss the elements of Porter’s 5 forces, and then go into further detail of each force later on. SAS’s threat of new entrants into their industry is moderate, and rivalry can be considered moderate as well. Substitute products/services are also moderate because firms using SAS’s software have options other than computer software to aid business decision making. Bargaining of power of buyers is low and bargaining power of buyers we consider high.

Next we will consider factors of the resource based model. This model incorporates both tangible and intangible resources, and the capacity the firm has to implement these capabilities. The resources SAS has acquired give them a significant advantage over competing rivals, and their capability to implement these resources to grow the...
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