TOWS MATRIX TOWS MATRIX TOWS Matrix helps us

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TOWS MATRIX

TOWS MATRIX

TOWS MATRIX • TOWS Matrix, helps us to think about the options that we

TOWS MATRIX • TOWS Matrix, helps us to think about the options that we could pursue after assessing the SWOT analysis. • To do this we should match external opportunities and threats with our internal strengths and weaknesses.

TOWS Strategic Alternatives Matrix Internal Strengths (S) 1. 2. 3. External Opportunities (O) 1.

TOWS Strategic Alternatives Matrix Internal Strengths (S) 1. 2. 3. External Opportunities (O) 1. 2. External Threats (T) 1. 2. SO "Maxi-Maxi" Strategy Strategies that use strengths to maximize opportunities. ST "Maxi-Mini" Strategy Strategies that use strengths to minimize threats. Internal Weaknesses WO WT (W) "Mini-Maxi" Strategy "Mini-Mini" Strategy 1. Strategies that 2. minimize weaknesses 3. by taking advantage of and avoid threats. opportunities.

 • This helps us to identify strategic alternatives that address the following additional

• This helps us to identify strategic alternatives that address the following additional questions: • Strengths and Opportunities (SO) – How can we use our strengths to take advantage of the opportunities? • Strengths and Threats (ST) – How can we take advantage of our strengths to avoid real and potential threats? • Weaknesses and Opportunities (WO) – How can we use our opportunities to overcome the weaknesses we are experiencing? • Weaknesses and Threats (WT) – How can we minimize our weaknesses and avoid threats?

How to use the tool? • Using the Tool • Step 1: Print off

How to use the tool? • Using the Tool • Step 1: Print off our free SWOT Worksheet and perform a TOWS/SWOT analysis, recording your findings in the space provided. This helps you understand what your strengths and weaknesses are, as well as identifying the opportunities and threats that you should be looking at. • Step 2: Print off our free TOWS Strategic Options Worksheet, and copy the key conclusions from the SWOT Worksheet into the area provided • Step 3: For each combination of internal and external environmental factors, consider how you can use them to create good strategic options: • Strengths and Opportunities (SO) – How can you use your strengths to take advantage of these opportunities? • Strengths and Threats (ST) – How can you take advantage of your strengths to avoid real and potential threats? • Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are experiencing? • Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?

BCG MATRIX

BCG MATRIX

BCG MATRIX ( GROWTH SHARE MATRIX)

BCG MATRIX ( GROWTH SHARE MATRIX)

PORTER’S FIVE FORCES MODEL

PORTER’S FIVE FORCES MODEL

PORTER’S FIVE FORCES MODEL

PORTER’S FIVE FORCES MODEL

§ § § 1. Rivalry Between Competing Sellers in the Market Numerous or equally

§ § § 1. Rivalry Between Competing Sellers in the Market Numerous or equally balanced competitors Slow industry growth High fixed or storage costs Lack of differentiation or switching costs Capacity augmented in large increments High exist barriers

2. The Threat of New Entrants § § § Economies of scale Product differentiation

2. The Threat of New Entrants § § § Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages Independent of scale

3. The Bargaining Power of Buyer • Concentrated or purchases large volume relative to

3. The Bargaining Power of Buyer • Concentrated or purchases large volume relative to seller sales • The products it purchases from the industry are standard or undifferentiated • The buyer faces few switching costs • It earns low profits • The buyers pose a credible threat of backward integration • The industry’s product is unimportant to the quality of the buyer’s product or services.

4. The Bargaining Power of Suppliers • The supplier group is dominated by a

4. The Bargaining Power of Suppliers • The supplier group is dominated by a few companies and is more concentrated than the industry it sells to • The industry is not an important customer of the supplier group • The supplier’s product is an important input to the buyer’s business • The supplier group’s products are differentiated or it has built up switching costs for the buyers.

5. The Threat of Substitutes • Better features • Cheaper prices • Better functionality

5. The Threat of Substitutes • Better features • Cheaper prices • Better functionality