ANSOFF MATRIX

STAKEHOLDER
MANAGEMENT
ANALYSIS

SWOT ANALYSIS

TOWS MATRIX

STRATEGIC
MANAGEMENT
ANALYSIS TOOLS

1. Ansoff Matrix
PRODUCT
MARKET
How to grow business /
organization through existing or
new products OR in existing or
new markets.
Help to assess and analyze
different
degree
of
risk
associated with moving the
organization forward
4 growth strategies
i.
Market Penetration
ii. Market Development
iii. Product Diversification
iv. Product Development

Example:
A business that operates in an
expanding market can grow
through market penetration.
A business in a mature, stable
market may choose to grow either
through market development or
product development depending
on its internal strengths.
If neither of these offers sufficient
potential, a business may consider
diversification to achieve further
growth

Increasing risk
1. Ansoff Matrix

Increasing risk
Based on recommended strategies identified using SPACE matrix, IE Matrix

1. Ansoff Matrix
Strategic planning tool that provides a
framework to help executives, senior
managers, and marketers devise strategies
for future growth.
4 growth strategies alternative:
1. Market Penetration An organization tries to grow using its
existing offerings (products and services) in existing markets. In
other words, it tries to increase its market share in current market
scenario.
2. Market Development An organization tries to expand into new
markets (geographies, countries etc.) using its existing offerings.
3. Product Development Organization tries to create new
products and services targeted at its existing markets to achieve
growth.
4. Diversification - In diversification, an organization tries to grow

1. Ansoff Matrix
EXAMPLES
Penetration:
Existing product to the existing customers changing pricing, adding minor features ,
changing packaging (size), highlighting
alternative uses (eg. Chocolate as a seasonal
gift)
Product Development:
New/improved product in existing market
Burger with salads (Mcdonald), new variety of
chocolate (Kitkat Rubies), Go Shop service

2. SWOT Analysis
Background :
SWOT analysis was created in the 1960s by
business gurus Edmund P.
Learned, C. Roland
Christensen, Kenneth Andrews and William D.
Book. SWOT, which stands for Strengths,
Weaknesses, Opportunities and Threats, is an
analytical framework that can help your company
face its greatest challenges and find its most
promising new markets.
What is the purpose:
SWOT analysis enables organizations to identify

2. SWOT Analysis
When to use SWOT :
SWOT is meant to be used during the proposal
stage of strategic planning.
It acts as a
precursor to any sort of company action, which
makes it appropriate for the following moments:

Exploring avenues for new initiatives

Making decisions about execution strategies for a new policy
Identifying possible areas for change in a program
Refining and redirecting efforts midplan

Internal factors
The first two letters in the acronym, S (Strengths)
and W (Weaknesses), refer to internal factors,

2. SWOT Analysis
Physical resources, such as your company's
location, facilities & equipment
Human resources, such as employees,
volunteers and target audiences
Access to natural resources, trademarks,
patents and copyrights
Current processes, such as employee programs,
department hierarchies and software systems

External factors
External forces influence and affect every
company, organization and individual. Whether
these factors are connected directly or indirectly

SWOT Analysis - Sample

2. SWOT Analysis
Finance
Example
2012- Maybank Auto
SWOT analysis to become No#1 Financer
2012- Maybank Auto Finance SWOT analysis to become No#1 Financer

STRENGTHS

WEAKNESSES

Reputation & brand. A well - respected and

recognizable BOB brand in Auto finance.
#1 dealer finance position that provides strategic
advantages and strong retail market position
among dealers.
Strong performance with lowest GIL rates and
highest growth in the industry.
Strong and hungry marketing and processing team
(MOPO) who are focus on delivery excellence
services to the dealers.

Rising CIR due to lower margin and higher cost.

High Fixed cost structure.
Limited fee-based income opportunities and
business regulated by HP Act.
Managing non-performer (10%), increasing staff
complacency and lack of staff diversity.
Old HPS system and business processes.

OPPORTUNITIES
Cross-sell products and services as most
customers acquired from dealers are N2B.
Diversify to C&I, equipment finance, CVs and non prime used car market.
Revisit TOM to be more lean, efficient and effective.
Invest in HPS modernization/ platform and
processes re-engineering with more advanced
capabilities

SW
OT

THREATS
Highly competitive business environment with
declining spread/ NII, some segments below
ROCA.
Maturing business. High market penetration and
vehicle population density.
New competitors from in-house finance
companies and offer new market entrants.

3. TOWS Matrix
TOWS is simply SWOT spelled backwards.
The TOWS matrix is used for strategic
planning and helps to identify opportunities
and threats and measure them against
internal strengths and weaknesses.
How to use tool:
To carry out a TOWS Analysis, consider the
following combinations:
Strengths/Opportunities:
Consider all strengths one by one listed in
the SWOT Analysis with each opportunity

3. TOWS Matrix
Weaknesses/Opportunities:
Consider all weaknesses one by one listed in the
SWOT Analysis with each opportunity to
determine how each internal weakness can be
eliminated by using each external opportunity.

Weaknesses/Threats:
Consider all weaknesses one by one listed in the
SWOT Analysis with each threat to determine both
can be avoided

3. TOWS Matrix
Internal
Factors
External
Factors

Opportunities (O)

Threats (T)

Strengths (S)

Weakness (W)

SO
"Maxi-Maxi" Strategy

ST
"Maxi-Mini" Strategy

Strategies that use

strengths to maximize
opportunities.

Strategies that use

strengths to minimize
threats.

WO
"Mini-Maxi" Strategy

WT
"Mini-Mini" Strategy

Strategies that minimize

weaknesses by taking
advantage of
opportunities.

Strategies that minimize

weaknesses and avoid
threats.

3. TOWS Matrix TOWS Matrix

To generating strategic options
Internal
Factors
External
Factors

Opportunities (O)
1. Growing affluent market demands
more luxurious cars with many
option.
2. Attractive offers to build an
assembly plant in U.S.
3. Chrysler and American Motors
need small engines.
Threats (T)
1. Exchange Rate - Devaluation of
Dollar in relation to Deutshe Mark
(DM).
2. Competition from Japanese and
U.S. Automakers.
3. Fuel shortage and price

1.
2.
3.

Strengths (S)
Strong R & D and Engineering
Strong sales and service network
Efficient production/automation
Capabilities

1.

2.
3.

Weaknesses (W)
Heavy reliance on one product
(Although Several Less
Successful Models were
Introduced)
Rising costs in Germany .
No experience with U.S. labor
unions if building plant in the U.S.

(O1S1S2) Develop and produce

multiproduct line with many options, in
different price classes (Dasher,
Scirocco, Rabbit Audi Line)

(O1W1) Develop compatible models

for different price levels (Ranging from
Rabbit to Audi Line)

(T3S1) Improve fuel consumption

through, fuel injection and develop fuel
efficient diesel engines

(T2,W1) Reduce threat of competition

by developing flexible product line.

12

4. Stakeholder Management
What are the purpose:
Using the opinions of the most powerful
stakeholders to shape the projects at an early
stage.
Gaining support from powerful stakeholders can
help to win more resources
Anticipating what people's reaction to project
Identifying all persons, groups and institutions who
may have an interest in a project and taking steps
to manage their interests and expectations so that

4. Stakeholder Management
Who to use :
Being used by aid agencies, governments or
consultant groups:
1.

Imperial College London

2.

Office of Government Commerce UK 2003

3.

Aubrey L. Mendelow, Kent State University, Ohio 1991

How to use the tool:

Step 1. Identify Your Stakeholders
Who are stakeholders?

Involved in the development of the product

Managing the development of the product

Working with the product

Owner of the product

4. Stakeholder Management
Step 2. Prioritize Your
Stakeholders
Specifies how each stakeholder
influences the organization
Decides what the organization
needs from each one of them
Rank them with respect to their
influence and importance
Analyse on the power versus
interest grid and which defines
the power of these stakeholders
in implementing any changes
versus interests of them in order
to implement these changes.

4. Stakeholder Management
Step 3. Understand Your
Key Stakeholders
Need to know more about
key stakeholders.
Need to know how they
are likely to feel about and
react to the project
Need to know how best to
engage them in the
project and how best to
communicate with them.