“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.”

Alcoa 

Alcoa is one of the major producers of primary aluminum, fabricated aluminum products and alumina. The company is a vertically integrated producer, operating across the aluminum value chain ranging from mining, refining and smelting to fabricating and recycling. Vertically integrated operations provide control over the entire value chain, and enable the company to produce critical products such as high-technology airfoils for jet engines. However, increasing electricity prices could affect the operating margins of the company, which are already below the industry average.