📈 TOWS Matrix: How to Do a TOWS Analysis

May 30, 2021

If you want to learn more about the TWOS Matrix, you came to the right place.

 

In this article, I’ll explain the TOWS matrix and examples of the strategies that fall under it.

 

The TOWS Matrix is a more advanced version of the SWOT matrix, which encompasses strengths, weaknesses, opportunities, and threats; the TOWS matrix allows you to combine internal and external factors with each other to develop new strategies.

 

The TOWS matrix helps both businesses and people at an individual level to enhance their situational awareness. This matrix can help you choose strategies that maximize positive outcomes and minimize negative outcomes.

 

Those strategies are the following:

Strength-Opportunity Strategies

This involves using internal strengths to capitalize on external opportunities; this is a great way to identify and exploit competitive advantages.

For example, a technology company such as Apple could use its vast financial reserves to develop an innovative product that is normally very expensive to produce to address an emerging market need.

 

Strength-Threat Strategies

this involves using internal strengths to avoid and minimize external threats.

For example, SpaceX will use its geographic advantage in Texas to drill for natural gas to avoid energy shortages and consistently launch rockets with that energy source.

 

Weakness-Opportunity Strategies

This involves improving internal weaknesses by using external opportunities.

For example, Google could outsource some of its customer support activities so that it can place more focus on core, income-producing activities.

 

Weakness-Threat Strategies

This involves avoiding threats and minimizing weaknesses.

As an example, General Electric sold its Healthcare Financial Services business to Capital One, so that it could reduce its operating costs, allocate more focus to other business units, and avoid potentially unfavorable market conditions.

 

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