Kedungprawan hamlet is one of the regions producing tempeh chips in Ngawi Regency. The purpose of this study was to determine internal and external factors, and to formulate alternative strategies for developing tempeh chips industry in Kedungprawan Hamlet. The respondents of this study were ten tempeh chip business owners and two key informants. The method used in this research consists of IFE and EFE matrices to determine internal and external conditions, IE matrix, SWOT, and QSPM. Based on the SWOT Matrix, the tempeh chips industry is in quadrant I in the SO strategy. The results of the study indicate the order of priority strategies that can be applied to the tempe chips industry in Kedungprawan Hamlet. The market penetration strategy has the highest TAS value of 6.92, the product development strategy has the second TAS value of 6.74, and the market development strategy has the third TAS value of 6.28.