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The Southern Company (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.”

The Southern Company

The Southern Company (Southern Company) is an energy holding company engaged in generation and distribution of electricity in Southeastern US. The company owns all the common stock of four utility companies: Alabama Power Company, Georgia Power Company, Gulf Power Company, and Mississippi Power Company. Southern Company primarily operates in Alabama, Georgia, southeastern Mississippi, and northwestern Florida, in the US. It is headquartered in Atlanta, Georgia and employs about 26,800 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Leader in clean coal technology
  • Customer satisfaction

Weaknesses

  • Limited presence
  • Dependence on subsidiaries to pay dividends
  • Litigation concerning erstwhile subsidiary Mirant

External

Opportunities

  • Growing population in the southeastern US
  • Long-term contracts
  • Growing popularity of renewable energy
  • Next generation technology for electric transmission system

Threats

  • Rising costs
  • Environmental regulations
  • Natural disasters and storms
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