“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.”

American International Group 

AIG is one of the world's leading insurance and financial services organizations, with operations in more than 130 countries. With a market capitalization of $186 billion, AIG was the ninth most valued company in the world as on December 2006. AIG’s subsidiaries are leading providers of retirement services, financial services and asset management around the world. The group was the second largest insurance group in the world after China Life Insurance, based on market capitalization as on December 2007. AIG's Domestic Brokerage Group (DBG) is the largest property and casualty organization in the US. The group's leading position in the global financial services market gives it significant bargaining power. However, exposure to the US sub prime crisis could affect the profitability of AIG.