Increasing population, human welfare, awareness of product safety in order to meet the regulation requires a reliable test laboratory. Competition among service-laboratory made PT XYZ as a test laboratory faces competition with other laboratories. This research aimed to analyze the strategy development of PT XYZ in order to 1) analyze the company's internal and external factors in the service laboratory industry, 2) determine company alternative strategies, 3) recommend the best strategy from these alternatives. The study used IFAS (Internal Factor Analysis Summary), and EFAS (External Factor Analysis Summary), IE (Internal External), and SWOT (Strengths Weakness Opportunities Threats) matrix. The internal analysis found five factors respectively, for strengths and weaknesses, while the external factor found five factors, respectively for opportunities and threats. The scores from IFAS and EFAS matrix analysis were of 2,785 and 2,583, respectively. These scores represented the company's position in the IE matrix, which was on cell V. Thus, the related strategy was hold and maintain. The formulated alternative strategies were market penetration, product development, and service differentiation.