“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.”

Fannie Mae 

Federal National Mortgage Association (Fannie Mae) is a government sponsored enterprise (GSE) chartered by the US Congress. The company's activities include providing funds to mortgage lenders through its purchases of mortgage assets, and issuing and guaranteeing mortgage related securities that facilitate the flow of additional funds into the mortgage market. According to a 2005 study by the Federal Reserve, the capitalized value of these privileges enjoyed by Freddie Mac and Fannie Mae amounted to a value between $122 billion and $182 billion. Fannie Mae's strong relationships with primary market lenders and a deep understanding of their needs, places it in a advantageous position as compared to other participants in the secondary mortgage market such as insurance companies, Freddie Mac, the Federal Home Loan Banks, pension funds, securities dealers and other financial institutions. However, declining net income coupled with high capital gearing could undermine the company’s near term as well as long term prospects.