“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.”

Freddie Mac 

Freddie Mac (Federal Home Loan Mortgage Corporation) is a public company engaged in the residential mortgage market in the US. The company engages in the purchase of residential mortgage loans and mortgage-related securities from mortgage lenders and securities dealers. Additionally it provides credit guarantee of payment of principal and interest for residential mortgages originated by mortgage lenders. The company's government sponsored entity status gives it a strong competitive advantage. However, market uncertainty and volatility coupled with subprime exposure could affect the company’s profitability.