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  • 1. TOWS & Blue Ocean Strategy Analysis - By Prof. Purvish Shah BE (Mech), PGDBM (Gold Medalist)
  • 2.
    • SWOT ( Strength, Weakness, Opportunity, Threats)
    • TOWS ( Threats, Opportunity, Weakness, Strength)
    • Both are same in meaning but, in TOWS all the functions are inter related with future strategies and planning.
  • 3. 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
  • 4.
    • Application of TOWS Matrix to Volks Wagon:
    • 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.
  • 5. 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
  • 6. 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.
  • 7.
    • Difference Between Blue Ocean and Red Ocean Strategy:
    • Try to create new market / Try to compete in existing market.
    • Market or Industry not exist today /
    • Grab the market share from your competitor
    • Demand is created / demand is fought
    • More concentration on Innovation / Focus on advertising, marketing, product promotions
  • 8.
    • SEQUENCE OF BLUE OCEAN STRATEGY:
    • Buyer Utility ( Is there any exceptional buyer
    • Utility in your business idea?
    • Price ( Is your price easily accessible
    • Cost (Can you attain your cost target to
    • profit your strategy)
    • - Is it possible for you to put your plan in reality?
  • 9.
    • TATA NANO:
    • Reverse pricing was done Price was set first looking at what people could pay.
    • Lower engine capacity for small city roads of India.
    • Supply chain being partner in development of product itself.
    • Save on costs like advertisement and special distribution network.
    • Entire Car to be built in Kit form and just do the assembly.
  • 10.
    • SOME MORE EXAMPLES:
    • PARAS PHARMA ( Move, Livon, Lipguard, Itch guard, Dermi cool, etc. )
    • Cavinkare – Launch of shampoo sachets for “chick” brand.
    • Nirma – Bottom of pyramid market ignored by both HLL and P & G.