“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.”

State Farm Insurance Cos. 

State Farm Insurance, through its various subsidiaries, provides property and casualty insurance, life and health insurance, annuities, mutual funds, banking and related products for both individuals and small businesses in the US and parts of Canada. The group's leading market position provides it with a profile that aids it in attracting new clients. However, the mounting trend of insurance frauds could increase its claim losses and may pull down its profit margins going forward.