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INTRODUCTION
 Developed by Dr. Heinz Weihrich
 TOWS means Threat-Opportunity-Weaknesses-Strengthness
 Same process of analysing as of SWOT analysis-But
difference is that, here threats and opportunities are
examined first and weaknesses and strengths are examined
last
 After creating list of threats, opportunities, weaknesses and
strength, managers examine ways the company can take
advantage of opportunities and minimize threats by
exploiting strengths and overcoming weaknesses
 Starts with threats because strategic plans
undertakes as a result of problem or threat
 Focusing in threats and opportunities first helps to
lead productive discussion about what is going on
in the external environment rather than discussing
what a company is good or bad at.
METHODS/STRATEGIES OF TOWS ANALYSIS
- Here Opportunities and Threats down the side and
Strength and Weaknesses across top
- each item added to matrix is lettered and
numbered
Eg- S1, S2, S3 for Strength and O1, O2, O3 for Opportunities
- If the grid is filled then matching of matrices begins
- results in different strategic altenatives for
organisation
- there are 4 types of strategies or strategic
alternatives
1. SO STRATEGY
-SO means Strengths and Opportunities
-is adopted after identifiying the strengths and
weaknesses of
organisation
-firm utilises maximum strengths to get maximum
advantage
from opportunities
-also known as Maxi-Maxi strategy
2. ST STRATEGY
- Means Strengths and Threats
- Maximum utilisation of a firms strength to minimise
threats
- also known as Maxi-Mini Strategy
3. WO STRATEGY
- Means Weaknesses and Opportunities
- Minimises the impact of weaknesses by utilising
maximum opportunities
- also known as Mini-Maxi strategy
4. WT STRATEGY
- Means Weaknesses and Threats
- Firms attempts to minimises the impact of both
weaknesses and threats
- also known as Mini-Mini strategy
The Organisation
Strengths – S
1.
2.
3.
4.
Weaknesses – W
1.
2.
3.
4.
Opportunities – O
1.
2.
3.
4.
SO Strategies
Leverage strengths to
maximise opportunities
= Attacking strategy
WO strtegies
Counter weknesses
through exploiting
opportunities = Bulid
strength for attacking
strategy
Threats – T
1.
2.
3.
4.
ST strategies
Leverage strengths to
Minimise threats =
Defensive strategy
WT strategies
Counter weaknesses and
threats = Bulid strengths
for defensive strategy
ADVANTAGES OF TOWS MATRIX
 Is a useful tool to formulate specific strategies
 It provides information and strategies to the
organisation
 Analysis generates effective strategic alternatives
 gives priorities to threats so that an organisation can
utilise strength and opportunities so as to overcome
threats and weaknesses
 The tool is simple and can be easily applied by
managers and is less expensive

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Tows matrix

  • 1.
  • 2. INTRODUCTION  Developed by Dr. Heinz Weihrich  TOWS means Threat-Opportunity-Weaknesses-Strengthness  Same process of analysing as of SWOT analysis-But difference is that, here threats and opportunities are examined first and weaknesses and strengths are examined last  After creating list of threats, opportunities, weaknesses and strength, managers examine ways the company can take advantage of opportunities and minimize threats by exploiting strengths and overcoming weaknesses
  • 3.  Starts with threats because strategic plans undertakes as a result of problem or threat  Focusing in threats and opportunities first helps to lead productive discussion about what is going on in the external environment rather than discussing what a company is good or bad at.
  • 4. METHODS/STRATEGIES OF TOWS ANALYSIS - Here Opportunities and Threats down the side and Strength and Weaknesses across top - each item added to matrix is lettered and numbered Eg- S1, S2, S3 for Strength and O1, O2, O3 for Opportunities - If the grid is filled then matching of matrices begins - results in different strategic altenatives for organisation - there are 4 types of strategies or strategic alternatives
  • 5. 1. SO STRATEGY -SO means Strengths and Opportunities -is adopted after identifiying the strengths and weaknesses of organisation -firm utilises maximum strengths to get maximum advantage from opportunities -also known as Maxi-Maxi strategy
  • 6. 2. ST STRATEGY - Means Strengths and Threats - Maximum utilisation of a firms strength to minimise threats - also known as Maxi-Mini Strategy
  • 7. 3. WO STRATEGY - Means Weaknesses and Opportunities - Minimises the impact of weaknesses by utilising maximum opportunities - also known as Mini-Maxi strategy
  • 8. 4. WT STRATEGY - Means Weaknesses and Threats - Firms attempts to minimises the impact of both weaknesses and threats - also known as Mini-Mini strategy
  • 9. The Organisation Strengths – S 1. 2. 3. 4. Weaknesses – W 1. 2. 3. 4. Opportunities – O 1. 2. 3. 4. SO Strategies Leverage strengths to maximise opportunities = Attacking strategy WO strtegies Counter weknesses through exploiting opportunities = Bulid strength for attacking strategy Threats – T 1. 2. 3. 4. ST strategies Leverage strengths to Minimise threats = Defensive strategy WT strategies Counter weaknesses and threats = Bulid strengths for defensive strategy
  • 10. ADVANTAGES OF TOWS MATRIX  Is a useful tool to formulate specific strategies  It provides information and strategies to the organisation  Analysis generates effective strategic alternatives  gives priorities to threats so that an organisation can utilise strength and opportunities so as to overcome threats and weaknesses  The tool is simple and can be easily applied by managers and is less expensive