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The AES Corporation (SWOT Analysis) - October 2011

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“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.”

The AES Corporation Company Overview 

The AES Corporation (AES) is one of the major global power companies, engaged in power generation and electricity distribution worldwide. The company operates in the Americas, Europe, the Middle East, Africa, and Asia. It is headquartered in Arlington, Virginia and employs 29,000 people.


Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Extensive global presence of operations
  • Diversified generation portfolio
  • Strong utility operations.

Weaknesses

  • Dependence on subsidiaries for payments Indebtedness.

External

Opportunities

  • Investments to enhance global presence.

Threats

  • Foreign currency fluctuations
  • Increasing competition.
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