Analyzing the competitive advantages and disadvantages of Germany with the TOWS Matrix ‐ an alternative to Porter’s Model

This article will describe a logical and efficient process of developing coherent national strategies in light of environmental forces that are present in the global market. It will then apply that process to the Federal Republic of Germany. The TOWS (threats, opportunities, weaknesses, strengths) Matrix will be used to accomplish this task. The TOWS methodology will focus on aspects of German industries that have had a significant impact ‐ either positively or negatively ‐ on the country’s economy and its position in the European Community and the world. Intrinsic national forces in the social, economic, political, and technological areas will be considered in determining the origin of Germany’s national industrial strengths and weaknesses. External opportunities for and threats to these industries will then be analyzed. After an analysis of a wide array of forces, strategies by German industries will be delineated and alternative industrial strategies will be proposed. Because former West Germany differs very much from former East Germany, the analysis will focus on what used to be called “West Germany”, referred to in this paper simply as Germany.