TOWS Analysis: Developing Strategic Planning Using a TOWS Matrix
- TOWS stands for Threats, Opportunities, Weaknesses, and Strengths.
- The TOWS analysis is a strategic planning tool that helps us understand the internal and external factors affecting an organization or a business.
- It helps us see the challenges and opportunities more clearly.
SWOT and TOWS analysis are Different
- TOWS analysis extends your SWOT analysis.
- While SWOT identifies internal strengths and weaknesses and external opportunities and threats, it does not provide any potential approach or strategies to exploit or deal with these.
- TOWS takes it a step further by combining these factors to generate strategies.
TOWS matrix templates
Advantages of using a TOWS analysis
The TOWS analysis provides dual benefits by enhancing strategic planning and resource allocation for business success while concurrently identifying potential dangers.
In summary, the TOWS analysis improves strategic planning, decision-making, identifies opportunities and risks, fosters adaptability, and aids in sustaining a competitive advantage.
Transforming SWOT into TOWS: Step-by-Step Process
Here are the steps for converting your SWOT analysis into TOWS analysis.
- Draw 4 boxes like your SWOT analysis like the image above.
- Write your strengths and weaknesses at the top of the diagram.
- Write the opportunities and threats at the left side.
- Now complete the four quadrants SO, ST, WO and WT as follows:
SO: Use strengths to maximize opportunities
1. Strengths and Opportunities (SO): Consider how strengths can be used to capitalize on opportunities.
WO: Reduce weaknesses to develop opportunities
2. Weaknesses and Opportunities (WO): Develop strategies to overcome weaknesses by taking advantage of opportunities.
ST: Use strengths to reduce threats
3. Strengths and Threats (ST): Explore strategies to use your strengths to lessen threats.
WT: Avoid threats by reducing weaknesses
4. Weaknesses and Threats (WT): Devise strategies to address weaknesses and reduce the risk of potential threats.
How to write a business strategic plan
Follow the stages in the business strategic pyramid to create, implement and achieve your mission. Good luck!
TOWS Matrix Examples
Examples SWOT & TOWS – well-known brands
- Toyota (Automobile Company):
- Strengths: Renowned for quality and innovation.
- Weaknesses: High dependence on specific markets.
- Opportunities: Growing demand for electric vehicles.
- Threats: Intense competition in the automotive industry.
TOWS Strategies:
- Leverage innovation to seize opportunities in the electric vehicle market.
- Diversify into emerging markets to reduce dependency risks.
- Samsung (Electronics Company):
- Strengths: Technological leadership and diverse product range.
- Weaknesses: Vulnerability to market fluctuations.
- Opportunities: Expanding into emerging technologies.
- Threats: Intense competition in the electronics sector.
TOWS Strategies:
- Utilize technological expertise to explore new markets.
- Develop flexible strategies to mitigate risks during market fluctuations.
Examples SWOT & TOWS – startup
Educational Tech Startup:
- Strengths: Innovative teaching methods.
- Weaknesses: Limited brand recognition.
- Opportunities: Growing demand for online education.
- Threats: Competition from established educational platforms.
TOWS Strategies:
- Capitalize on innovative teaching methods to differentiate from competitors.
- Form strategic partnerships to enhance brand visibility in the online education sector.
Use a TOWS Matrix for Developing Strategic Decisions
- Use the TOWS matrix as a visual tool for strategic decision-making and planning.
- Align your strategies with the overall organizational goals and objectives.
- Assess the feasibility and impact of each identified strategy.
- Prioritize strategies based on their potential contribution to the organization’s goals.
- Consider resources and timelines in the decision-making process.
- Seek feedback.
- Adjust strategies based on changing conditions.