The TOWS matrix is the most important step to move into the formulation of strategies. It is based on the SFAS table and requires thinking on strategies that for example uses strengths to take advantage of opportunities or strengths to minimize threats.

You have already completed the SFAS table. Use that table to create the TOWS. The template for TOWS Matrix isTemplateSA-EXH7-TOWS.docxavailable in Course Resources and the attachments here.

Use the Exhibit 3 Amazon SFAS to FILL OUT A SIMILAR TOWS Matrix Using the SFAS Amazon.

EXHIBIT 3

STRATEGIC FACTOR ANALYSIS SUMMARY (SFAS) on AMAZOM COMPANY (AC)

Strategic Factors	Weight	Rating	Weighted Score	S H O R T	I N T E R M E D I A T E	L O N G	Comments
S1: Solid Brand Recognition	.15	5.0	.45			X	This SF was chosen because of its significant potential Due to its widespread brand recognition, Amazon has gained the trust and loyalty of its customers. Sales and market position are positively impacted by brand value and reputation. Future sales and revenue might be significantly impacted, with an estimated $1 billion in yearly revenue. 0.10weight is High. This SF is High Because AC's main competency is brand strength, and the company receives a high rating of 4 for its outstanding brand awareness.
S4: Effective Client Relations	.070	4.0	.35		X	X	I selected this SF because Amazon is renowned for providing outstanding customer service, which includes quick and dependable shipping, easy returns, and helpful customer assistance. Customer loyalty is encouraged and the company's reputation is improved by its dedication to customer satisfaction. There could be a significant effect on repeat business and customer retention. A $500 million annual boost in client lifetime value is anticipated. This SF is low. AC rates highly for its good customer service, receiving a score of 4. Good customer service is one of the company's fundamental competencies.
S5:Effective Supply Chain Management	.10	5.0	.75			X	I added this SF because Order fulfillment and inventory management are made possible by Amazon's effective supply chain management systems. Having a more efficient supply chain results in quicker deliveries and cheaper operational expenses. There could be a significant influence on customer happiness and cost savings. Effective supply chain management is expected to result in yearly cost savings of $600 million.Weight is high at .10. AC's main competency is supplying chain effectiveness, and its supply chain management is evaluated on a scale of 3 on average.
W1: Reliance on Online Sales	.15	2.0	.20		X	X	This SF is important because Due to its reliance on online sales, Amazon may be in danger from changes in internet usage, cybersecurity issues, and technological setbacks. Sales and income could suffer from any changes in consumer behavior or disruptions in the online market. The potential harm to future sales and market share is considerable. This Weight is 0.10. AC's reliance on online sales is one of its weaknesses, and the corporation is given an average ranking of 3 Rating for this aspect
W2: Exorbitant Shipping Costs	.05	2.5	.10		X		I selected this SF because the hefty shipping costs associated with Amazon's free worldwide shipping offers and Prime membership eat into the company's profitability. The rising cost of transportation makes it difficult to retain profitability and can make it more difficult for the business to provide competitive pricing. There may be significant effects on profit margins and overall financial success. Due to increased transportation costs, it is predicted that annual revenues will decrease by $400 million. This SF is low. AC's downside is high shipping costs, which are assessed at a below-average level of 2 Rating for the corporation.
O2 Diversification and expansion of product offerings	.20	2.0	.05		X	X	This SF was selected because of its very significant potential impact on profit growth. Successful expansion of product offerings* as well as *diversification* of product offerings: Amazon has steadily expanded its product selection beyond books, and now it sells everything from consumer devices to food and groceries. This diversification not only brings in a larger consumer base but also helps the organization become less dependent on any one product area. This SF is weighted lower at .2 since expanding product offerings is vital to the survival of AC considering competitors and markets. I rated this low at 4 since AC has experience in this market at this time and is far ahead of it peers.
O1: Increased internet usage	.10	2.0	.20	X	X		This SF was chosen because of its significant potential for the expansion of Internet usage and comfort with online shopping. An increased comfort level with online buying due to increased internet usage Amazon's potential client base is growing because of the increasing number of individuals who can use the internet and who are becoming more at ease with the process of making purchases online. This SF could have a very significant impact on sales to the AC survival, so the weight has a relatively low score of .02. I rated this a 4 since AC does a good job on their Internet marketing/sales process is well developed.
T1 Intense competition	.10	4.0	.40	X	X		This SF is important because of strong competition from another online retailer that threatens AC's market share and sales. Amazon conducts its business in a very competitive environment, in which other companies like eBay, Alibaba, and Walmart are consistently working to gain market share at Amazon's expense. This rivalry has the potential to drive prices and profit margins in a negative direction. Rated high at 4.0 as AC market share has been maintained with aggressiveness and continues to grow.
T2: Dependence on external vendors	.070	2.0	.18	X			I selected this SF because It relies too much on other vendors when you must compete, and the price range is high. Amazon's selection of products is mostly determined by those offered by third-party vendors. Any problems with these merchants, such as disruptions in the supply chain, problems with quality control, or unethical business methods, might have a detrimental influence on Amazon.com. This SF is rated at 3.0 because AC must depend on third-party vendors.
T3: Cybersecurity threats	.10	4.5	.20	X	X	X	This SF is important because it is an online shop, Amazon is susceptible to being attacked over the internet. A data breach of sufficient proportions might be detrimental to Amazon's reputation and lead to major financial losses. 0.2weight is low. This SF rating is high at 4.0 because AC is an industry Where they invest highly in cybersecurity to Protect Users from the bad party.
Total Scores:	1.00		2.88

The TOWS Matrix needs to be for Amazon. Not Olallieberry Pie Company it was only an example that I gave you for the Olallieberry Pie Company TOWS Matrix

Example

TOWS MATRIX on OLALLIEBERRY PIE COMPANY (OPC)

Internal Factors (from IFAS)

External Factors (from EFAS)	Strengths (S) S1 Competent Senior Leadership S2 Supplier Relationships S3 Product Quality and Uniqueness	Weaknesses (W) W1 Management Information System W2 Corporate Marketing
Opportunities (O) O1 Growing Market in Western States O2 International Growth Opportunities O3 Aging U.S. Population/Demographics	S/O Strategies Expand into international arena by forging strategic alliances (Use S1, S3 to gain O2). Leverage Quality Marketing campaign to increase sales (Use S3 to gain O3).	W/O Strategies Implement Online Sales business with customer friendly and responsive web-based systems (Focus on W1, W2 to gain O3). Develop and field ERP system (Focus on W1to gain O1, O2).
Threats (T) T1 U.S. Competition T2 Imports from China	S/T Strategies Contest competition advances by implementing Lean programs (S1, S2, S4, S5 to min T1) Form strategic alliances with Chinese importers (use S1, S2 to min T2)	W/T Strategies Rollout re-designed and enlarged product marketing program (Overcome W1, W2 to min T1). Invest in downstream supply chain infrastructure improvements (improve W1 to minimize T1). Modernize MIS/ERP to improve competitiveness (improve W1 to reduce T1 and T2).