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AES Corporation, The

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 companys strategic situation. The technique is based on the
assumption that an effective strategy derives from a sound fit between a firms
internal resources (strengths and weaknesses) and its external situation
(opportunities and threats). A good fit maximizes a firms strengths and
opportunities and minimizes its weaknesses and threats. Accurately applied, this
simple assumption has powerful implications for the design of a successful
strategy.
AES Corporation, The
The AES Corporation (AES) is one of the major global power companies,
engaged in power generation and electricity distribution worldwide. The company
operates in Latin America, North America, Europe, Africa, and Asia. It is
headquartered in Arlington, Virginia and employs about 28,000 people.
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AES Corporation, The
Strengths, Weaknesses, Opportunities and Threats (SWOT)
TYPE OF FACTOR Location of Factor
Favorable Unfavorable
Internal Strengths
Global presence
Strong financial
performance
Diversified and
balanced portfolio
Weaknesses
Concentrated
suppliers and
customers
Limited presence in
the value chain
External Opportunities
Increasing demand for
electricity in the US
Project order backlog
Focus on alternative
energy
Threats
Rising fuel prices
Foreign currency
fluctuation
Environmental
regulations

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