THE TOWS MATRIX FOR STRATEGY FORMULATION

INTERNAL Internal Strength(S) Internal Weakness(W)

FACTORS
EXTERNAL
FACTORS
External Opportunities (O)
(consider risk also)
e.g.,current and future
economic condition, political
and social change, new
product, service and
technology
e.g., strength in management,
operation, finance, marketing,
R&D, engineering
SO Strategic: Maxi-Maxi
Potential the most
successful strategy,
utilizing the organization of
strengths to take advantage
of opportunities
e.g weaknesses in areas
shown in the box of
“strength”
WO Strategy: Mini-Maxi
e.g. developmental strategy
to overcome weaknesses in
order to take advantage of
opportunities

External Threats (T) ST Strategy: Maxi-Mini WT Strategy: Mini-Mini

e.g. lack of energy, competition e.g., use of strengths to cope e.g. retrenchment,
and areas similar to those show with threats or to avoid liquidation or join venture
in the “opportunities” boxes threats
above