Tows Matrix

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