TOWS matrix analysis gives diverse strategic tactics or options and short term strategies or set of strategies by analyzing internal capacity of the company and external environment of the industry. TOWS analysis is the complement for the SWOT analysis; because without SWOT analysis TOWS analysis will not be completed. TOWS and SWOT both words are the combination of same alphabets as given below:
By performing both analysis internal (strengths and weaknesses) and external (threats and opportunities) findings give the results of some strategies or set of strategies for organization about product launching, marketing tactics, expanding or divesting products, growing retail network, etc.
Different Strategic Decision
Analyzing SWOT and TOWS give some strategic decisions that are more important to run the smooth operations of the business or provide options which are more important to retain or escalate market position according to demand of environment. TOWS matrix provides us different strategic options; we have to match internal strengths and weaknesses to external opportunities and threats. As demonstrated in the example of Perrigo company below:
Strengths and Opportunities (SO): In this quadrant Perrigo can grab opportunities by using its strengths. For example Perrigo Company can achieve opportunity O1 by using its strengths S1, S2, and S3. In the same way different set of strategies are available to Perrigo.
Weaknesses and Strengths (WO): In this quadrant Perrigo can minimize weaknesses by clutching its opportunities such as: minimizing W1 by taking the advantage of O1 and O4.
Strengths and Threats (ST): Generate strategies here that utilize strengths to avoid threats as Perrigo is using S3, S6, and S7 to avoid T1 and other strategic options as well.
Weaknesses and Threats (WT): Generate strategies that minimize weaknesses and avoid threats; such as Perrigo diminishes W1 and avoid T1 and T3.