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. Page 1 of 2 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