A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.

   To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

                                SWOT / TOWS Matrix

   S-O strategies pursue opportunities that are a good fit to the company's strengths.

   W-O strategies overcome weaknesses to pursue opportunities.

   S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.

   W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.