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Allied Waste Industries (SWOT Analysis)

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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.”

Allied Waste Industries

Allied Waste Industries provides waste collection, transfer, recycling, and disposal services for residential, commercial, and industrial customers. The company primarily operates in the US. It is headquartered in Phoenix, Arizona and employs about 23,000 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Vertically integrated operations
  • Steady financial performance
  • Varied customer base

Weaknesses

  • Low market share and geographic concentration
  • Substantial amount of outstanding indebtedness
  • Possible tax liability

External

Opportunities

  • Possible merger of Republic Services
  • Demand for environmental services

Threats

  • Increasing fuel costs
  • Federal and state regulatory constraints
  • Economic slowdown in the US
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