TOWS
TOWS Matrix Internal Factors
Strengths Weaknesses
SO1: Having a network of WO1: Potential market development is
geographically distributed stores will advocate to operate on globally scale
maximise the benefit of potential market rather than internationally.
development. WO2: Diversification of product
SO2: Best Buy is well known with high offerings will comeover of the trading
quality of service this will be perfect by relatively luxury commodity.
Opportunitie
with customer awareness toward value WO3: Customer awareness toward
s pertaining price. value pertaining price will overcome
SO3: Providing purchase financing higher selling prices comparing with
External
service through their own credit cards in competitors.
Factors addition to globally used credit cards
will support Increase demand for
purchases by installments.
ST1: Since Best Buy is providing WT1: Best Buy needs to maintain a
purchase financing service through their positive working capital balance to face
own credit cards in addition to globally the recession pressure toward increase
Threats used credit cards this will solve the issue cost of operation.
of Long lasting for economic recession.
TOWS Model:
Internal Organizational strengths Organizational
(list all strengths) weaknesses (list all
S1 weakness)
S2 W1
External S3 W2
Environmental SO: Strengths can be used to WO: The strategies
opportunities capitalize or build upon developed need to
O1 existing or emerging overcome organizational
O2 opportunities. weaknesses if existing or
O3 (min 2 solution in each emerging opportunities are
quad) (in form of actions) to be exploited
Environmental ST: Strengths in the WT: The strategies pursued
threats organization can be used to must minimize or overcome
T1 minimize existing or weaknesses and as far as
T2 emerging threats possible cope with threats
T3
S-O Strategies
1. Expand XXX(company) segment to popular countries where they
have strong economy and have positive image for US products and
services
2. Increase advertising and promotion to young generation (coupons
and rebate cards) through social networks such as Twitter and
Facebook
3. Expand into international market more where the economy is stronger
4. Aggressively promote the XXX(company) by offering deep
discounts to local and surrounding counties / cities
5. Penetrate the market (non-locals) by offering discount / membership
cards if purchased in advance (% off after so many visits), student or
state or employee discounts, corporate / school event discounts, etc.
6. Implement a vertical or horizontal integration (forward or backward)
of a company that has global presence
7. Increase advertising spending by additional 10 percent on fee
based segments
8. Cutback prices on advertising and fee-based segment by 2 percent
9. Increase R&D on products related to YYY(products)
10. Invest additional funding in R&D, improving new product
introduction
11.
12. Acquire additional companies that are innovative and have
pending patents on popular health related products
13. Expand into S. American and European countries by offering
better incentives and financing
14. Produce more fuel efficient and smaller models and promote them
with lower financing options (in case of cars)
15. Continue purchasing new companies in segments that the company
is losing product sales or market share
16. Continue international expansion
17. Develop a new product line, focusing on organic ingredients
18. Acquire a small competitor that sells to restaurants and /
or intermediary channels
19. Develop a lower price / light weight bike, efficient in fuel
consumption for individuals who are interested in riding a bike
but can’t afford or ride the current models
20. Create a new line for female riders to be promoted in US and
foreign markets
W-O Strategies
1. Sell off low revenue generating segments / products to raise cash
and pay off debt
2. Sell off low profit segments and pay down the long-term debt
3. Sell off business units to improve cash infusion to the company Form
joint ventures with companies who are not in direct competition with
drug companies but are within health-related businesses for
developing/introducing non-competing products
4. Increase franchising and licensing to improve cash flow and income
5. Improve security implemented on products to reduce /
limit intellectual property and licensing violations
6. Develop new products for small kids based on cartoon characters
7. Sponsor more athletics programs, mostly for young generation
8. Try buying new equipment and rides by long term financing or by
establishing loyalty agreement for reserving more cash for working
capital
9. Acquire innovative technology/Internet- related businesses using
a combination of cash and debt
10. Increase marketing efforts through social networks and the Internet
on consumer YYY(products) specific to young generation
11. Develop new health related products such as vitamins and dietary pills
/ drinks for health-conscious consumers
12. Improve operations by being more lean and cutting back
excessive executive spending
13. Increase quality control to improve reducing product recalls
14. Promote “healthy” snacks and drinks
15. Improve the quality by educating the workers on how to test and
sample products before they are shipped
16. Offer a better discount for retailers to sell / promote
Harley merchandise such as clothes, mugs, etc.
17. Offer better financing rate to new / first time buyers
S-T Strategies
1. Negotiate with employees and union representative for pay cut to
eliminate laying off staff and improve cash flow. Use the savings
and offer better discounts to customers
2. Improve security measure in theme parks and hospitality locations by
using surveillance cameras
3. Develop a new moderately priced product line
4. Expand distribution by selling to stores other than their own retailers
5. Struck a deal with the county or local government for getting
additional funding for renovation of historic building and re-building
the local area. This would attract more businesses to the area and
will be a revenue enhancing venture for the city / county
6. Form partnership with other related businesses (restaurant or hotel
chain, car rental, etc.) for opening stores close by and share some
of the mass advertising cost
7. Offer new marketing data collection for advertisers
8. Create additional bundling partnership for sound or video streaming
9. Form a partnership/ joint venture (minority interest) with generic
drug manufacturers on promoting and educating the health benefits
of specific products
10. Outsource some of R&D procedures and processes in order to
reduce R&D cost but ensure the intellectual property remains secure
and confidential
11. Improve promotion on selected lower priced models with zero or
very low rate financing to younger generation through Internet using
Facebook, Twitter, and other networking channels
12. Offer “Free” extended warranty for additional 2 years to gain
customer loyalty and brand image
13. Use the excess cash by acquiring biotechnology or other health related
businesses
14. Work with the government and the U.S. Congress in developing a
medical program, discounting product pricing
15. Sponsor programs to teens and younger generation to through
virtual Facebook, Twitter, and such
16. Improve distribution in European market with new and innovative
organic products
17. Increase current promotional campaign (product placement,
advertising, Online
newsgroup / press releases, media ads, etc.) both in the U.S. and abroad
W-T Strategies
1. Sell off non-producing product lines and then pay off the long term
2. Consolidate or reorganize the organizational structure for additional cost
savings and to improve financial performance
3. Make low priced footwear made in the U.S. and promote it as “Made in
America”
4. Acquire a less expensive brand of accessories and sportswear and
promote them as an off brand of Nike
5. Rebrand the XXX(company) by being under new management and
further promote local hiring and the benefits to the locals
6. Improve innovation to protect the company’s technology, patent rights and
information security
7. Increase advertising and promotion by educating the consumers on the
benefits of using brand versus generic products
8. Create a social network area for consumers to discuss their concerns and
side effect of products so the company can have better track records of
issues and be able to improve public image before the issues escalates
legally
9. Since dealers are not able to turn around their inventory fast enough, offer
co-op advertising with more incentives for moving the YYY(products)
faster
10. Reorganize further and use the excess cash to buy companies with
healthier products
11. Implement a better-quality control internally and with suppliers to
reduce YYY(products) wastes or defects
12. Discontinue products in YYY(products) division that are not selling
(Introduce a new product line – Harley2 suitable for female riders, light
weight and priced lower to be marketed to a new segment
At the end choose 2-3 actions from the options (SO, WT) and justify the choice
and make sure these strategies match vision and mission of company.
(safest strategy to use is intensive strategy)
