Case Study 4
Dr. Paula Stechschulte
SWOT analysis is a tool for auditing an organization
and its environment. It is the first stage of planning and
helps marketers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses are internal factors. Weaknesses
and threats are external factors. The TOWS Model is the
taken one step further in that it simply looks at the
negative factors first in order to turn them into positive
In 1998 when German industrial giant Daimler-Benz AG
merged with American automobile manufacturer, Chrysler
Corporation, Daimler Chrysler came into existence. Daimler-
Benz acquired Chrysler Corporation for $36 billion,
representing one of the largest industrial mergers in
history. This added to the $48 billion value of its Benz's
existing stock making Daimler Chrysler worth $84 billion.
This merger didn't result for the big picture that was
expected after this merge. It was thought that this merger
would create a global economy not only between two of the
worlds greatest economy but also capturing the market in
various part of the world. Whereas, underneath this view
there were many issues, which were involved in this merger
of totally two different culture. Daimler-Benz was an
aggressive firm, which believed in hustling every possible
way to make its company the number through out the world.
But, Chrysler was on the other hand a easy going and slow
progress firm which believed in the production and
flexibility of operation even bearing the various expense
it might had to face. This merger turned into a disaster so
quick that it seemed like in a short term view that this
companies would be in great trouble of surviving in such
hostile condition. By December 2000 just two years after...