TOWS Matrix

November 26, 2013

Sanyogita
Rathore
Shruti Mittal
Sashidhar
Ramaka
Sasidhar
Macharla
Sarvesh Mittal

Agenda
Introduction
Stages of TOWS analysis
Strategies
Case Study

Agenda
Introduction
Stages of TOWS analysis
Strategies
Case Study

Introduction

Acronym of SWOT
TOWS analysis is an algorithm of the
strategic analysis process, involving
systematic and comprehensive
assessment of external and internal
factors.
It helps in determining current condition
and growth potential of the company.
Guidelines derived are company should
avoid threats, exploit opportunities,
strengthen its weaknesses and base
important activities on its strengths.

Process of Strategy
Formulation

Step 1- Deals with some basic questions

pertaining to the internal and external
environments.
Step 2 - Concern primarily the present and
future situation in respect to the external
environment.
Step 3 - Audit of strengths and weaknesses,
focuses on the internal resources of the
enterprise.
Step 4 - Activities necessary to develop
strategies, tactics and specific actions are
carried out, so as achieve the enterprise's
overall objectives.
Step 5 - Contingency plans must be prepared

Agenda
Introduction
Stages of TOWS analysis
Strategies
Case Study

Whether its broke or not, fix it- make

it better. Not just the products but the
whole company if necessary. Bill
Saporito

STAGES OF TOWS ANALYSIS

Identification of opportunities and

threats

Identification and analysis of strengths

and weaknesses

Determination of strategic position and

direction of business development

Agenda
Introduction
Stages of TOWS analysis
Strategies
Case Study

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TOWS Matrix - Strategies

SO Strategy : Maxi-Maxi
ST Strategy : Maxi-Mini
WO Strategy : Mini-Maxi
WT Strategy : Mini-Mini

TOWS Matrix - Strategies

SO situation - maxi-maxi strategy : This situation

applies to the company for which dominates strengths
in the environment and opportunities within. This
situation corresponds to the maxi-maxi strategy: strong
expansion and diversified development.

WO situation - mini-maxi strategy : In this situation

company has the more vulnerabilities - weaknesses, but
its environment gives more opportunities. The strategy
should include the use of these opportunities while
reducing or correcting weaknesses within the
organization.

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TOWS Matrix - Strategies

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ST situation - maxi-mini strategy : The source of

development difficulties for the company are unfavorable
external conditions (prevalence of threats). The company
may use large internal strengths in attempt to overcome
threats from environment.

WT situation - mini-mini strategy :The company in this case

is devoid of any development opportunities. It operates in
hostile environments, and its potential for change is small. It
does not have significant strengths, which could withstand
threats. Mini-mini strategy boils down to a pessimistic
version of the liquidation or in optimistic situation - to strive
for survival, or merger with another organization.

Agenda
Introduction
Stages of TOWS analysis
Strategies
Case Study

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Apple TOWS Matrix

Internal

Strengths (S)
Strong brand image
Financial position
Product differentiation
Apple Retail strategy
Manufactures Hardware and
Software
Most user friendly GUI

Weaknesses (W)
Patent lawsuit
Apple iOS uses Google maps
Pricing
Product line is short
Protective strategy

External
Opportunities
(O)
Uncovered Markets
Strong growth in
smartphone and tablet
markets
Loyal Customers

SO Strategies

WO Strategies

Apples brand recognition

Global expansion through Mexico,
throughout all its markets can Portugal, France and Australia, south
strengthen
by
offering
less east asia.
expensive version of each product
to appeal to lower income
market
Develop product for business
segment
Improve customer Experience

Threats (T)

ST Strategies

WT Strategies

Rising popularity of Google

Android & other operating
system
Technology Innovation
Supply System
Samsung has lauched its
own OS- Tizen

Purchase voice and data network

to complement the smartphone
division will help acquire stronger
market position
Focus on supply chain.
Focus on R&D.

Long term agreements between Apple

Inc. and the suppliers to guarantee
production commitments
Continue investment in technology in
order to stay ahead of competitors
and become a market leader

Samsung TOWS Matrix

Internal

External
Opportunities (O)

Strengths (S)
Hardware integration with many
open source OS and softwares
Excellence in engg and producing
hardware parts and consumer
electronics
Innovation and design
Development of new OS (Tizen)
Low production costs
Largest share in mobile phones
Ability to market the brand

SO Strategies

Weaknesses (W)
Patent infringement
Too low profit margin
Main competitors are also largest
buyers
Lack its own OS and software
Focus on too many products

WO Strategies

Growing Indias smart phone market

Growing mobile advertising industry
Growing demand for quality
application processors
Growth of tablets market
Obtaining patents through
acquisitions

Tapping markets like India with low

prices
Develop new technologies to avoid
patent issues
Improve Brand Image

Threats (T)

ST Strategies

WT Strategies

Focus on R&D to sustain the

technological disruptions
Penetration into the untapped third
world countries
Scale-up development of new
technologies for hardware
production
Focusing on cost reduction
Tie-ups with service providers

Concentrating focus on fewer

products and improve quality
Long term agreements with
Corporate clients who are also
competitors
Bringing better designs with better
quality
Improving Customer experience

Saturated smart phone markets in

developed countries
Rapid technological change
Declining margins on hardware
production
Breached patents
Apples Tie-up with Reliance(India)
Price wars

Improving Customer Service to

make them loyal to the brand
Focus on launching Tizen OS
Strive for margin expansion
without compromising on the
volumes by cutting costs

Thank you

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