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Central University of Kerala Department of Management Studies

The document discusses the TOWS matrix, which is a variant of the SWOT analysis model used to develop strategic options. The TOWS matrix starts with an external analysis of opportunities and threats, then considers internal strengths and weaknesses. It links the external and internal analyses to identify four strategic options: using strengths to take advantage of opportunities (S-O); using strengths to avoid threats (S-T); using opportunities to overcome weaknesses (W-O); and minimizing weaknesses to avoid threats (W-T). The TOWS matrix goes beyond SWOT analysis by relating internal and external factors to generate actionable strategies. It can be used by various levels within an organization to improve strengths and address weaknesses in light of opportunities and threats.

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62 views3 pages

Central University of Kerala Department of Management Studies

The document discusses the TOWS matrix, which is a variant of the SWOT analysis model used to develop strategic options. The TOWS matrix starts with an external analysis of opportunities and threats, then considers internal strengths and weaknesses. It links the external and internal analyses to identify four strategic options: using strengths to take advantage of opportunities (S-O); using strengths to avoid threats (S-T); using opportunities to overcome weaknesses (W-O); and minimizing weaknesses to avoid threats (W-T). The TOWS matrix goes beyond SWOT analysis by relating internal and external factors to generate actionable strategies. It can be used by various levels within an organization to improve strengths and address weaknesses in light of opportunities and threats.

Uploaded by

Fara Hameed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Central University of Kerala

Department of management studies


MBG5502 Strategic Management

Assignment on
TOWS Matrix

Submitted by
Khadeejath farhana m.h

Submitted to
Ms. Saumya
The TOWS Matrix is derived from the SWOT Analysis model, which stands for the internal
Strengths and Weaknesses of an organisation and the external Opportunities and Threats that the
business is confronted with. The acronym TOWS is a variant of this and was developed by the
American international business professor Heinz Weirich.

The TOWS Matrix is aimed at developing strategic options from an external-internal analysis
and is a practical tool, particularly in the fields of business administration and marketing.
Whereas SWOT Analysis starts with an internal analysis, the TOWS Matrix starts the other way
around, with an external environment analysis; the threats and opportunities are examined first.

From that standpoint, an organisation gets a clear picture of its environment and the opportunity
to think about strategy and what direction the company will go in. Next the company’s strengths
and weaknesses are considered; what it’s good at internally and what it’s not so good at.
The external analysis is linked to the analysis and the resulting TOWS Matrix can help an
organisation to make decisions better, seize opportunities and protect itself better against threats.

The TOWS Matrix helps businesses to identify their strategic options. An organisation gets the
opportunity to make the most of its strengths and get around its internal weaknesses and learn to
deal with them properly. Externally, an organisation learns to carefully look for market
opportunities and recognise possibilities. And they learn how to control and overcome potential
threats.

The TOWS Matrix can also help with brainstorming and developing great ideas to generate
effective marketing strategies and tactics. Furthermore, the model goes beyond merely finding
out the strengths and weaknesses within an organisation and what opportunities and threats there
are in its environment. It forces organisations to really think about how they can improve
themselves, how they can guard against threats and become more aware of their expertise and
potential shortcomings.
The TOWS Matrix is not just meant for the highest levels of management in an organisation. It
can be a very useful tool for departments (i.e. a marketing or sales team) or for individual
employees on an operational level. Once it’s employee’s or a department’s strengths are known,
these can be improved further to become even better. The TOWS Matrix emphasises the external
environment.

It starts by analysing external opportunities and threats. Up next are the internal strengths and
weaknesses, which will subsequently be linked to the external analysis. And this is where it goes
a step beyond the traditional SWOT analysis; strategic tactics emerge by opposing S-O
(Strengths-Opportunities), W-O (Weaknesses-Opportunities), S-T (Strengths-Threats) and W-T
(Weaknesses-Threats).
A next step in the analysis helps when thinking about the option they want to pursue. Here the
external opportunities and threats are compared to the internal strengths and weaknesses to help
identify strategic options:

Internal Strengths and External Opportunities (S-O) – how can they use the strengths to benefit
from existing external opportunities?
Internal Strengths and External Threats (S-T) – how can they benefit from their strengths to
avoid or lessen (potential) external threats?
Internal Weaknesses and External Opportunities (W-O) – how can they use opportunities to
overcome the organisation’s internal weaknesses?
Internal Weaknesses and External Threats (W-T) – how can they minimise weaknesses and thus
avoid potential threats?

TOWS vs SWOT Analysis


● SWOT matrix is a planning tool, whereas TOWS matrix is an action tool. In SWOT
analysis you identify all the Strengths, Weaknesses, Opportunities, and Threats in point
form. After that you think of each point as a singular perspective.
Whereas, TOWS matrix identifies the relationships between these factors and selecting
strategies on their bases. Strengths and weaknesses are abstract concepts that can be hard
to think about without any sort of context.
● TOWS Matrix has a wider scope when it is compared with SWOT analysis. Through
SWOT analysis organization identify their strengths, weaknesses, opportunities and
threats. While conducting the SWOT Analysis managers are often not able to come to
terms with the strategic choices that the outcomes demand

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