GERMANY
STRATEGY FORMULATION & IMPLEMENTATION
 
 
 
 
 

S.W.O.T. Analysis For Doing Business In Germany:

STRENGTHS

a.) Germany is a technologically advanced country falling behind only the United States and Japan.  Germany has a high availability of technologically advanced labor.

b.) Employees tend to be very loyal in Germany and look to enhance the well being of the company.

c.) Germany is a politically stable country.  However, it has only been united under one constitution since 1990.

 

WEAKNESSES

a.) While the government of Germany is a federal republic and professes free trade, it is also known to be a more controlling government than other democracies.  These controls include things such as public access to information.







 

OPPORTUNITIES

a.) Labor laws are fairly strict and protect employees rewarding them for seniority rather than performance.

b.) Germany is open to foreign investment and encourages free trade.

c.) The German economy is among the top three countries in the world falling behind the United States and Japan.

d.) The population of Germany is 83 million people in a relatively small area.

THREATS

a.) Competition in Germany is high making it harder to break into the market.

b.)  Germany's labor costs are higher than many other countries where cheap labor can reduce manufacturing costs.





 


 
 

Sources
Boston, William. German Garbage Scandal Raises Fears of Rampant Corruption. The Wall Street Journal. March 20, 2002.A19.
CIA - World Factbook - Germany
Interview with Dr. Kirsten Daniel of Loyola University, New Orleans
Scarborough, Jack. The Origins of Cultural Differences and Their Impact on Management.Quorum Books 2001. p216.
www.foreign-direct-investment.de