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Germany SWOT Analysis

SWOT Analysis

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Weaknesses

Labour cost. HIghest wages in the world An average of 27.9 Euro in Western Germany and 17.4 in Eastern Europe.. Military. Budgeting and spending problems. Only 1.5% of Germany`s GDP is spent on military, causing it to fall behind the military powerhouses. Import. Country is more or less focuses on exprting their product where they have little experience in exporting. May be an issue where they don`t out source.. Labour Unions. Consists of very large strict labour unions. Income taxes. 65% of Germany`s revenue comes from labour taxes. That is 13% higher then the average OECD country. It is not attractive when thinking of immigrating into Germany.

Threats

Euro. Euro is on verge of anoher recession. Developing Countries. Debt. Germany's governments debt continues to increase with the Euro zone crises looming and large bailouts in being handed out..

Strengths

Political Stability. Technology. Has established high recognition as a country, "made in germany" Germany has 277 international patents per one million inhabitants - more than anywhere else in the world.. Location. Economy. World`s third largest economy and the largest single market in the European Union. Transportation. Personnel. Germany offers an exceptionally well-qualified, motivated and conscientious workforce. German employees' high standard of knowledge and skills is internationally recognized. strong. Europes powerhouse that. Corruption. There is very little corruption in Germany out of 10 they have 8 on the corruption perceptions index.. Chemical Industry. Bio-technoogy industry. Electrical engineering. Rivers. 3 of Europe`s largest rivers - Rhine, Danube, and Elbe cross several regions of the country. Creating for a complex infrastructure of brages and ships that can transport freight.. Surrounding Countries. Central location in Europe, 10 surrounding countries. Social Market Economy. Leader in Exports. Manufacturing Industries. SMEs. Small companies that employ less than 500 employees. These companies make up 98 percents of German companies and hire about 80 percent of all employees.. Autobahn. Deutsche Bahn. Highly sophisticated rail system that has spent over 4 billion euros each years for over 15 years in investing and upgrading the rail system.. Freight. Port of Hamburg, 9th largest port in the world. V ery sophisticated inland waterways. One of a few countries that invests a lot of money into their water ways. Over 1 billion in 2009..

Opportunities

Industries. Leader in manufacturering on tecnological products. Investment. Germany ranks in fifth in the world`s most attractive investment places( behing the United States, China, United Kingdom and India).. Market. Manufacturing. FDI. Inflows of FDI are countinueing to rise as the world sees potential in Germany's knowledge in technology and manufacturing.. Large Market. Largest market within Europe with 82 million inhabitants. With a GDP of more than 2.4 trillion it is the strongest economy in Europe and the third strongest in the World.. Open Market. Warmly welcomes foriegn enterprises. 22,000 foreign enterprises are established in Germany employing 2.7 million..