Matching Stage

TOWS Matrix

– Threats
– Opportunities
– Strengths
– Weaknesses

Ch 6-1
Fred R. David
Prentice Hall
 TOWS Matrix

Develop four types of strategies

– Strengths-Opportunities (SO)
– Weaknesses-Opportunities (WO)
– Strengths-Threats (ST)
– Weaknesses-Threats (WT)

Ch 6-2
Fred R. David
Prentice Hall
 SO Strategies

Threats Use a firm’s

Opportunities SO internal
strengths to take
Weaknesses Strategies
advantage of
Strengths external
(TOWS) opportunities

Ch 6-3
Fred R. David
Prentice Hall
 WO Strategies

Improving
Threats internal
Opportunities WO weaknesses by
Weaknesses Strategies taking
Strengths advantage of
(TOWS) external
opportunities

Ch 6-4
Fred R. David
Prentice Hall
 ST Strategies

Threats Using firm’s

ST strengths to
Opportunities
avoid or reduce
Weaknesses Strategies the impact of
Strengths external threats.
(TOWS)

Ch 6-5
Fred R. David
Prentice Hall
 WT Strategies

Defensive
Threats tactics aimed at
Opportunities WT reducing internal
Weaknesses Strategies weaknesses
Strengths and avoiding
(TOWS) environmental
threats.

Ch 6-6
Fred R. David
Prentice Hall
 TOWS Matrix

Steps in developing the TOWS Matrix

1. List the firm’s key external opportunities

2. List the firm’s key external threats
3. List the firm’s key internal strengths
4. List the firm’s key internal weaknesses

Ch 6-7
Fred R. David
Prentice Hall
 TOWS Matrix
Developing the TOWS Matrix

5. Match internal strengths with external opportunities

and record the resultant SO Strategies
6. Match internal weaknesses with external
opportunities and record the resultant WO Strategies
7. Match internal strengths with external threats and
record the resultant ST Strategies
8. Match internal weaknesses with external threats and
record the resultant WT Strategies

Ch 6-8
Fred R. David
Prentice Hall
 TOWS Matrix
Leave Blank Strengths-S Weaknesses-W

List Strengths List Weaknesses

Opportunities-O SO Strategies WO Strategies

List Opportunities Use strengths to take Overcome weaknesses

advantage of opportunities by taking advantage of
opportunities

Threats-T ST Strategies WT Strategies

List Threats Use strengths to avoid Minimize weaknesses

threats and avoid threats
Ch 6-9
Fred R. David
Prentice Hall