TOWS
MATRIX
BM412 - Strategic Management
■ invented by an American business
professor, Heinz Weirich in 1982
■ examine businesses from a
practical approach in reference to
administration and marketing
TOWS ■ strategic planning tool
analysis ■ aids organizations to remain one
step ahead
■ can help in the generation of
amazing ideas in relation to fruitful
marketing strategies, decision-
making, etc.
Threats
Opportunities
Weaknesses
Strengths
SWOT TOWS
Audit and analysis of the business Strategy generation and selection
Used at the beginning of the planning Utilized at the later part of the planning to
process decide next steps
Two (2) Factors
External Internal
environment environment
• Threats • Weaknesses
• Opportunities • Strengths
involves the using of internal strengths
of the company to make optimum use
of the external opportunities available
to the company
Strengths and
Opportunitie How can you use your strengths
s (SO) to take advantage of the
opportunities?
[Maxi-maxi
strategy]
If a company has reasonably established a
brand name in the market and has won the
hearts of the consumers, there lies a golden
opportunity to explore the new market
locations or introducing a new line of products
and services for the same target market.
maximize the strengths of a company while
minimizing the threats with the support of
these strengths
Strengths and
Threats (ST) How can you take advantage of your strengths
[Maxi-mini to avoid real and potential threats?
strategy]
In the market, there is always a cut-throat competition
amongst peers or, between new and old entrants. In
such a scenario, to beat the competition, the lagging
company needs to take advantage of the internal
strengths such as quality, manufacturing techniques,
legacy and customer service.
attempts to minimize the weaknesses and to maximize the
opportunities. The aim is to revamp internal weaknesses
by making use of external opportunities.
Weaknesses
and
Opportunities How can you use your opportunities to overcome the
(WO) weaknesses you are experiencing?
[Mini-Maxi
strategy] If the company is not an expert in any of the business
facet that is required for the growth and success and is
presented with the opportunity for an alliance with the
other company that has the required expertise, it works as
a win-win situation for both the parties involved.
minimize weaknesses and minimize threats
Weaknesses
and Threats
How can you minimize your weaknesses
(WT) [Mini- and avoid threats?
Mini
strategy] A company has lost its shine and glory and has lost the faith of the
stakeholders. Thus, there exists a threat of losing out on funding and
investment by investors. In this case. it might close down poor-
selling products, cut down underperforming employees and build a
hostile technique of selling. If optimistic, the company might look
for merging with another suitable company to leverage its expertise
and resources for hanging on to funding.
Advantages of TOWS Matrix
TOWS Analysis helps to stumble upon strategic ideas by interconnecting the
internal and external factors for the organizations.
It is cost-effective in nature.
It is user-friendly and can be performed by any layman after learning a few
parameters.
TOWS Analysis can be applied to any company irrespective of the industries
and economies.
It helps organizations to upgrade their strategies with changing dynamics.
Disadvantages of TOWS Matrix
On many occasions, TOWS Matrix
doesn’t take the ever-changing
competitive environment into
TOWS analysis becomes tough to
consideration and can affect the main
handle if we are overloaded with
agenda of finding out strategies for
information.
business in attaining elevated profits,
higher sales, creation of brand value
and etcetera.
■ Strengths and Opportunities (SO) of Apple:
– Since there has been an increase in demand for mobile devices, the
company should increase its focus by concentrating on
manufacturing and marketing to generate profit. Apple should also
leverage its brand value and financial strength to enter into new
products and consequently increase their sales and profit.
■ Strengths and Threats (ST) of Apple:
– Apple should build a diversified range of products
to fabricate its customer base and diminish the
pressure of competitiveness. Another most
important point is to consider the cultural variance
to retain the competitive advantage created by
Steve Jobs.
■ Weakness and Opportunities (WO) of Apple
– Since Apple has only high-end products, it should
release a cluster of products at an affordable price
to make it feasible for middle-class consumers.
■ Weaknesses and Threats (WT) of Apple
– Releasing a range of competitively priced products
to attract middle-class customers can change the
scenario altogether to reduce the pressure from
competitors. It should also widen the product sets
and try to cash in on the capability of the existing
supply chain to decrease the manufacturing costs.
References
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![Strengths and
Opportunitie
s (SO)
[Maxi-maxi
strategy]
involves the using of internal strengths
of the company to make opt](/p?url=https%3A%2F%2Fscreenshots.scribd.com%2FScribd%2F252_100_85%2F141%2F628897813%2F7.jpeg&__src=https%3A%2F%2Fwww.scribd.com%2Fpresentation%2F628897813%2FTOWS-Matrix&__type=image)
![Strengths and
Threats (ST)
[Maxi-mini
strategy]
maximize the strengths of a company while
minimizing the threats with the](/p?url=https%3A%2F%2Fscreenshots.scribd.com%2FScribd%2F252_100_85%2F141%2F628897813%2F8.jpeg&__src=https%3A%2F%2Fwww.scribd.com%2Fpresentation%2F628897813%2FTOWS-Matrix&__type=image)
![Weaknesses
and
Opportunities
(WO)
[Mini-Maxi
strategy]
attempts to minimize the weaknesses and to maximize the
opportun](/p?url=https%3A%2F%2Fscreenshots.scribd.com%2FScribd%2F252_100_85%2F141%2F628897813%2F9.jpeg&__src=https%3A%2F%2Fwww.scribd.com%2Fpresentation%2F628897813%2FTOWS-Matrix&__type=image)
![Weaknesses
and Threats
(WT) [Mini-
Mini
strategy]
minimize weaknesses and minimize threats
How can you minimize your weakn](/p?url=https%3A%2F%2Fscreenshots.scribd.com%2FScribd%2F252_100_85%2F141%2F628897813%2F10.jpeg&__src=https%3A%2F%2Fwww.scribd.com%2Fpresentation%2F628897813%2FTOWS-Matrix&__type=image)