TOWS ANALYSIS (TOWS MATRIX) WITH EXAMPLE –
- Swot analysis is only evaluates internal strengths & weaknesses and also external opportunities & threats of any organization. But Tows evaluate external threats and opportunities to Compare, & Make strategies by using internal strengths and weaknesses
- It is an action oriented concept.
- While using tows strategy makers consider both internal and external factors.
AGGRASIVE STRATEGY (SO) –
- It is also called maxi-maxi strategy.
- This strategy says an organization should be utilize it’s internal strength to take advantage of its external opportunities.
- It contains strong expansion and growth.
CONSERVATIVE STRATEGY (ST) –
- It is also called maxi-mini strategy.
- This strategy says an organization should utilize its internal strength to reduce its external threats.
- It contains long success.
COMPETATIVE STRATEGY (WO) –
- It is also called mini-maxi strategy.
- This strategy says an organization need to overcome its weaknesses to take benefit of opportunities .
- Under this strategy weaknesses are dominant over opportunities.
DEVENSIVE STRATEGY (WT) –
- It is also called mini-mini strategy.
- This strategy says business has no any internal strength so business should merge with other enterprise or liquidate it.
TOWS MATRIX EXAMPLES -
1. TOWS MATRIX FOR APPLE INC.
'SO' ANALYSIS – Using strengths to capitalize on existing opportunities. Use brand image to diversify and develop partnership with other brands by introducing compatibility feature.
'WO' ANALYSIS – Overcome weaknesses to capitalize on opportunities. Attract middle class customers by reducing price. Find new customer segments and introduce new products tailored for them.
'ST' ANALYSIS – Use strengths to combat threats. Control cost to beat competition. Focus on cultural change.
'WT' ANALYSIS - Reduce weaknesses to combat threats. Exploit existing supply chain capabilities to reduce costs. Introduce competitively priced products.