“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.”

Delphi  

Delphi is a leading supplier of automotive components and modules to original equipment manufacturers and the aftermarket. The company has global operations with a diversified revenue base. Delphi has been earning an increasing percentage of its revenues from non-GM customers. Revenues from non-GM customers accounted for 63% of the total revenues in 2007, up from 39%in 2003. Increasing percentage of revenues from non-GM clients reduces Delphi's dependence on the ailing GM and also provides stability to the company’s operations. However, rising raw material prices are likely to put further pressure on the margins of the company and can significantly delay the turnaround of the company.