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Daimler (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Daimler

Daimler AG develops, manufactures, distributes and sells a wide range of automotive products, mainly passenger cars, trucks, vans and buses. The company primarily operates in the US and Germany. It is headquartered in Stuttgart, Germany and employs about 272,382 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Business and geographic diversification
  • Strong focus on research and development
  • Strong performance of ‘Mercedes-Benz cars’ division

Weaknesses

  • Weak margins and returns
  • Employee post retirement benefits
  • Weak turnover ratios

External

Opportunities

  • Increasing demand for hybrid electric vehicles
  • Opportunities in Asian markets

Threats

  • Economic slowdown
  • European Union vehicle regulations
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