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CMA Intermediate · Operations Management and Strategic Management · Strategic Analysis and Strategic Planning

A TOWS matrix is used to turn SWOT findings into strategic options. A firm with strong internal R&D capability (strength) faces a government push for domestic manufacturing that creates a new market (opportunity). Which strategy type does this pairing suggest?

The pairing suggests an SO strategy. In a TOWS matrix, matching an internal strength (R&D capability) with an external opportunity (domestic manufacturing push) yields strategies that use strengths to capture opportunities. WO, ST and WT involve weaknesses or threats, which are absent here.

  1. AWT strategy aimed at defensive retrenchment
  2. BWO strategy aimed at overcoming weaknesses by using opportunities
  3. CSO strategy using strengths to pursue opportunitiesCorrect
  4. DST strategy using strengths to avoid threats

Explanation

TOWS pairs internal and external factors. Strength with Opportunity gives SO strategies, which are growth-oriented and use internal strengths to capture external opportunities. WO would involve a weakness, ST would involve a threat, and WT would involve both a weakness and a threat.

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