Both are same in meaning but, in TOWS all the functions are inter related with future strategies and planning.
WT “ Mini-Mini” Strategy that minimize weaknesses and avoid threats. WO “ Mini – Maxi” Strategy that minimize weakness by taking advantages of opportunities Internal Weakness ST “ Maxi-Mini Strategy” Strategy that use strengths to minimize threats. SO “Maxi-Maxi Strategy” Strategy that use strength to maximize Opportunities Internal Strength External Threats External Opportunities
This is a Germany based company in to manufacturing of automobile.
In 1980s company wanted to enter in to US market
Case discusses TOWS analysis done for them.
WT - Overcome Weaknesses by Making Them Strengths (Move Toward OS Strategy) - Reduce Threat of Competition by Developing Flexible Product Line ST - Reduce Effect of Exchange Rate by Building a Plant in the U.S. - Meet Competition with Advanced Design Technology - Improve Fuel Consumption Through R & D ET - Exchange Rate: Devaluation of Dollar in Relation to Deutshe Mark (DM) - Competition from Japanese and U.S. Automakers - Fuel Shortage and Price WO - Develop Compatible Models for Different Price Levels (Ranging from Rabbit to Audi ) - To Cope with Rising Costs in Germany, Build Plant in U.S., Hiring U.S. Managers with Experience in Dealing with U.S. Labor Unions SO - Develop and Produce Multiproduct Line with Many Options, in Different Price Classes ( like desser, Audi Line) - Build Assembly Plant Using R & D, Engineering. - Build Engines for Chrysler and AMC EO - Growing Affluent Market Demands More Luxurious Cars with Many Options - Attractive Offers to Build an Assembly Plant in U.S. - Chrysler and American Motors Need Small Engines IW- Heavy Reliance on One Product - Rising Costs in Germany - No Experience With U.S. Labor Unions if Building Plant in the U.S. IT- Strong R & D and Engineering - Strong Sales and Service Network - Efficient Prod / Automation Capabilities
Blue Ocean Strategy: Strategy where a business unit decides to create new market space rather than competing in existing market is known as Blue Ocean Strategy.