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TOWS Matrix
November 26, 2013
SanyogitaRathore
Shruti Mittal
SashiharRama!a
Sasihar
Ma"harlaSarvesh Mittal
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#gena
$ntrou"tion
Stages o% TOWS analysis
Strategies
&ase Stuy
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#gena
Stages o% TOWS analysis
Strategies
&ase Stuy
$ntrou"tion
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$ntrou"tion '
#"ronym o% SWOT
TOWS analysis is an algorithm o% thestrategi" analysis (ro"ess, involvingsystemati" an "om(rehensiveassessment o% external an internal
%a"tors) $t hel(s in etermining "urrent "onition
an gro*th (otential o% the "om(any)
+uielines erive are "om(any shoul
avoi threats, ex(loit o((ortunities,strengthen its *ea!nesses an baseim(ortant a"tivities on its strengths)
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ro"ess o% Strategy-ormulation ' Ste( 1' .eals *ith some basi" /uestions
(ertaining to the internal an externalenvironments)
Ste( 2 ' &on"ern (rimarily the (resent an%uture situation in res(e"t to the external
environment) Ste( 3 ' #uit o% strengths an *ea!nesses,
%o"uses on the internal resour"es o% theenter(rise)
Ste( ' #"tivities ne"essary to evelo(
strategies, ta"ti"s an s(e"i" a"tions are"arrie out, so as a"hieve the enter(risesoverall obe"tives)
Ste( 4 ' &ontingen"y (lans must be (re(are
5
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#gena
$ntrou"tion
Stages o% TOWS analysis
&ase Stuy
Strategies
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5Whether its bro!e or not, x it' ma!eit better) Not ust the (rou"ts but the*hole "om(any i% ne"essary) 7 8illSa(orito
8
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ST#+9S O- TOWS #N#:;S$S
$enti"ation o% o((ortunities anthreats
$enti"ation an analysis o% strengthsan *ea!nesses
.etermination o% strategi" (osition anire"tion o% business evelo(ment
9
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#gena
$ntrou"tion
Stages o% TOWS analysis
&ase Stuy
Strategies
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TOWS Matrix ' Strategies
SO Strategy < 5Maxi'Maxi ST Strategy < 5Maxi'Mini
WO Strategy < 5Mini'Maxi
WT Strategy < 5Mini'Mini
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TOWS Matrix ' Strategies
SO situation - maxi-maxi strategy < This situationapplies to the company for which dominates strengthsin the environment and opportunities within. Thissituation corresponds to the maxi-maxi strategy: strongexpansion and diversied development.
WO situation - mini-maxi strategy < In this situationcompany has the more vulnerailities - wea!nesses" utits environment gives more opportunities. The strategyshould include the use of these opportunities whilereducing or correcting wea!nesses within theorgani#ation.
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TOWS Matrix ' Strategies
ST situation - maxi-mini strategy
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#gena
$ntrou"tion
Stages o% TOWS analysis
StrategiesStrategies
&ase Stuy
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#((le 7 TOWS Matrix $nternal
9xternal
Strengths =S>•
Strong rand image•)inancial position•+roduct di,erentiation•pple etail strategy•'anufactures /ardware andSoftware•'ost user friendly 01I
Wea!nesses =W>•+atent lawsuit•pple iOS uses 0oogle maps•+ricing•+roduct line is short•+rotective strategy
O((ortunities=O>
•1ncovered 'ar!ets•Strong growth insmartphone and taletmar!ets•2oyal 3ustomers
SO Strategies•pple4s rand recognitionthroughout all its mar!ets canstrengthen y o,ering lessexpensive version of each productto appeal to lower incomemar!et•5evelop product for usiness
segment•Improve customer 6xperience
WO Strategies•0loal expansion through 'exico"+ortugal" )rance and ustralia" southeast asia.
Threats =T>•ising popularity of 0ooglendroid 7 other operatingsystem• Technology Innovation•Supply System•Samsung has lauched itsown OS- Ti#en
ST Strategies•+urchase voice and data networ!to complement the smartphonedivision will help ac(uire strongermar!et position•)ocus on supply chain.•)ocus on 75.
WT Strategies•2ong term agreements etween ppleInc. and the suppliers to guaranteeproduction commitments
•3ontinue investment in technology in
order to stay ahead of competitorsand ecome a mar!et leader•
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Samsung 7 TOWS Matrix $nternal
9xternal
Strengths =S>•/ardware integration with manyopen source OS and softwares•6xcellence in engg and producing
hardware parts and consumerelectronics•Innovation and design•5evelopment of new OS %Ti#en&•2ow production costs•2argest share in moile phones•ility to mar!et the rand
Wea!nesses =W>•+atent infringement• Too low prot margin•
'ain competitors are also largestuyers•2ac! its own OS and software•)ocus on too many products
O((ortunities =O>•0rowing India4s smart phone mar!et•0rowing moile advertising industry•0rowing demand for (ualityapplication processors•0rowth of talets mar!et•Otaining patents throughac(uisitions
SO Strategies• Tapping mar!ets li!e India with lowprices•5evelop new technologies to avoidpatent issues•Improve 8rand Image
WO Strategies•Improving 3ustomer Service toma!e them loyal to the rand•)ocus on launching Ti#en OS•Strive for margin expansionwithout compromising on thevolumes y cutting costs
Threats =T>•Saturated smart phone mar!ets indeveloped countries•apid technological change•5eclining margins on hardwareproduction•8reached patents•pple4s Tie-up with eliance%India&•+rice wars
ST Strategies•)ocus on 75 to sustain thetechnological disruptions•+enetration into the untapped thirdworld countries•Scale-up development of newtechnologies for hardwareproduction•)ocusing on cost reduction• Tie-ups with service providers
WT Strategies•3oncentrating focus on fewerproducts and improve (uality•2ong term agreements with3orporate clients who are alsocompetitors•8ringing etter designs with etter(uality•Improving 3ustomer experience
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Than! you