Of the external (EFAS) and internal (IFAS) factors listed, which are the strategic (most important) factors that strongly affect the organization’s present and future performance? Review of Mission and Objectives Are the current mission and objectives appropriate in light of the key strategic factors and problems? Should the mission and objectives be changed? If so, how? If they are changed, what will be the effects on the firm? Strategic Alternatives and Recommended Strategies Potential responses to threats from Porter’s forces: High Threat of New Entrants: Erect entry barriers that make it difficult for a company to enter the industry. Potential barriers include: economies of scale; product differentiation; capital requirements; switching costs (customer); access to distribution channels; cost disadvantages; and governmental policy. High Bargaining Power of Buyers: Diversify your customer base; acquire competitors to reduce number of alternatives; increase customer switching costs; enhance buyer’s profitability; invest in product R&D so your product is more valuable to the buyer. High Bargaining Power of Suppliers: Develop alternative sources of supply; cross sourcing; backward vertical integration; modularize product design to enable supplier switching; consolidate purchases with less suppliers, giving each a larger share of your business. High Rivalry Among Existing Firms: Reduce the incentive to attack; respond with overwhelming force when a competitor enters your market segment; acquire competitors; increase industry growth; invest in capital improvements which lower cost, and lower price aggressively to drive competitors out. TOWS Matrix Strengths/Competencies (S) Weaknesses (W) Strength 1 Weakness 1 Strength 2 Weakness 2 Strength 3 Weakness 3 Strength 4 Weakness 4 Weakness 5 Strength 5 Opportunities (O) SO Strategies (use strengths to take WO Strategies (take advantage of advantage of opportunities) opportunity by overcoming weakness) Opportunity 1 One One Opportunity 2 Two Two Opportunity 3 Three Three Opportunity 4 Opportunity 5 Threats (T) ST Strategies (use strengths to avoid WT Strategies (minimize weakness to threats) avoid threats) Threat 1 Threat 2 One One Threat 3 Two Two
Of the external (EFAS) and internal (IFAS) factors listed, which are the strategic (most important) factors that strongly affect the organization’s present and future performance? Review of Mission and Objectives Are the current mission and objectives appropriate in light of the key strategic factors and problems? Should the mission and objectives be changed? If so, how? If they are changed, what will be the effects on the firm? Strategic Alternatives and Recommended Strategies Potential responses to threats from Porter’s forces: High Threat of New Entrants: Erect entry barriers that make it difficult for a company to enter the industry. Potential barriers include: economies of scale; product differentiation; capital requirements; switching costs (customer); access to distribution channels; cost disadvantages; and governmental policy. High Bargaining Power of Buyers: Diversify your customer base; acquire competitors to reduce number of alternatives; increase customer switching costs; enhance buyer’s profitability; invest in product R&D so your product is more valuable to the buyer. High Bargaining Power of Suppliers: Develop alternative sources of supply; cross sourcing; backward vertical integration; modularize product design to enable supplier switching; consolidate purchases with less suppliers, giving each a larger share of your business. High Rivalry Among Existing Firms: Reduce the incentive to attack; respond with overwhelming force when a competitor enters your market segment; acquire competitors; increase industry growth; invest in capital improvements which lower cost, and lower price aggressively to drive competitors out. TOWS Matrix Strengths/Competencies (S) Strength 1 Strength 2 Strength 3 Strength 4 Strength 5 Weaknesses (W) Weakness 1 Weakness 2 Weakness 3 Weakness 4 Weakness 5 Opportunities (O) Opportunity 1 Opportunity 2 Opportunity 3 Opportunity 4 Opportunity 5 SO Strategies (use strengths to take advantage of opportunities) One Two Three WO Strategies (take advantage of opportunity by overcoming weakness) One Two Three Threats (T) Threat 1 Threat 2 Threat 3 ST Strategies (use strengths to avoid threats) One Two WT Strategies (minimize weakness to avoid threats) One Two