Strategic Management- TOWS Matrix

This presentation tells about TOWS Matrix, and how is it different from SWOT Analysis

1. TOWS Matrix Sachin udhani

2. So what is TOWS Matrix?

3. TOWS Matrix is an acronym for Threats, Opportunities, Weakness and Strength.

4. TOWS Matrix is same as SWOT analysis, which helps the company to analyse the Internal and External factor i,e Strength, Weakness, Opportunities and Threats. The only difference between them is that SWOT analysis only give the description about internal and external factor whereas TOWS matrix shows the relation between internal and external factor so that company can frame their strategies to take maximum benefit from it.

5. So, how it works?

6. There are 4 combination of TOWS analysis

7. SO Strategy This strategy is also name as Maxi-Maxi strategy. SO Strategy tells about how to utilise your Internal strength to grab external opportunity. For eg. high brand loyalty & good quality, helps the company to enter into new market or launch new product.

8. WO Strategy This strategy is also said as mini-maxi strategy. This strategy tell the company to strengthen their weaknesses to take benefit of prevailing opportunities. For eg. product high price is creating a hindrance to enter in a new market. Therefore by upgrading production technology can lead to reduction in price of product.

9. ST Strategy This strategy is also name as maxi-mini strategy. In this company tries to minimise threats by their strength. This strategy empowers the company, because by this company knows why they are existing and how they can manage external threats. For eg. because of good quality and company's reputation we can avoid the risk for foreign or external competitor.

10. WT Strategy This strategy is also known as mini-mini strategy. This can be considered as a defensive strategy, where company tries to strengthen their weakness and avoid any external threats. For eg. if a company is not having sufficient fund and on the other hand competitors have also increased which results to decrease in the demand. Therefore we have to focus on this aspect.