TOWS

INTRODUCTION
• TOWS Matrix is same as SWOT analysis, which helps the company to
analyze the internal and external factor i,e Strength, Weakness,
opportunity and Threats.
• The only differences between them is that SWOT analysis only give
the description about internal and external factors whereas TOWS
matrix shows the relation between internal and external factors so that
company can frame their strategies to take maximum benefit from it
• Same process of analysis as of SWOT analysis but differences is that, here
threats and opportunity are examined first and weaknesses and strength are
examined last
• After creating list of threats, opportunity, weaknesses and strength, managers
examines ways the company can take advantage of opportunities and
minimize threats by exploiting strength and overcoming weaknesses.
• TOWS matrix has a wider scope than SWOT analysis
• TOWS matrix is an action tool whereas SWOT analysis is an planning tool
 TOWS MATRIX
TOWS ANALYSIS STRENGTHS WEAKNESSES

OPPORTUNITIES S-O strategies W-O strategies

THREATS S-T strategies W-T strategies

 S-O STRATEGY(MAX-MAX)

The first and foremost strategy of the tows matrix involves the using
of internal strengths of the company to make optimum use of the
external opportunities.
 S-T STRATEGY(MAX-MINI)

This Strategy of the tows matrix implies that the management of the
company would exploit all the internal strengths to overcome any of
the potential threats that in the way of the business to accomplish the
desired goals and objectives
W-O STRATEGY (MINI -MAXI)
• The strategies which are developed need to overcome organizational
weaknesses if existing opportunities are to be exploited to maximum.

• Example
 WEAKNESS - Lack of skilled laborer's.
- Lack of smart salesman.

OPPORTUNITIES - Labor contractors .

- outsource recruiting of skilled and competent salesman.

Opportunity of starting new project can be exploited by converting weakness into

strength
W-T STRATEGY (MINI-MINI)
• It’s a position that every firm avoids
• And enterprise facing external threats and internal weakness may have to
struggle for it’s survival
• W-T strategy is pursued to minimize or overcome weakness and cope up
with existing or emerging threats.
• Weakness must be overcome to curb the external threads.

Example: WEAKNESS - Weak taxation team

THREATS - GST launch
 APPLICATION OF TOWS
Lets consider a cake shop:
 SWOT ANALYSIS

1. FINANCIAL STABILITY
1. RUN-DOWN BUILDING
2. EXPERIENCED
2. HIGH STAFF TURNOVER
CONFECTIONER

1. FOOD TOURISM
1. HEALTHY LIVING
2. INCREASE IN DISPOSIBLE
2. HIGH COMPETETION
INCOME
 TOWS ANALYSIS
STRENGTH WEEKNESS
1. FINANCIAL STABILITY 1. RUN-DOWN BUILDING
2. EXPERIENCED CONFECTIONER 2. HIGH STAFF TURNOVER

OPPERTUNITIES
1. FOOD TOURISM OFFERING AND CAMPAIGN REORGANISE AND INVEST IN STAFF
2. INCREASE IN
DISPOSIBLE INCOME
TARGETED AT FOOD TOURISM WELL-BEING

THREATS
1. HEALTHY LIVING CARRY OUT REPAIRS OR MOVING
INTENSIFY PROMOTIONAL ACTIVITY
2. HIGH COMPETETION LOCATON