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Tows Matrix









The TOWS Matrix Heinz Weihrich


TOWS analysis is an action tool whereas SWOT analysis is a planning tool.

TOWS Matrix has a wider scope when it is compared with SWOT analysis. Through SWOT analysis organization identifies their strengths, weaknesses, opportunities and threats. While conducting the SWOT Analysis managers are often not able to come to terms with the   strategic choices that the outcomes demand. Heinz Weihrich developed a matrix called TOWS Matrix by matching strengths and weaknesses of the organization with the external opportunities and threats. The incremental benefit of the TOWS Matrix identifies relationships between these factors and selecting strategies on their basis.The TOWS Matrix is tool for generating series of strategic options.Through TOWS matrix four distinct alternative kinds of strategic choice can be identified.

SO (Maxi-Maxi): SO is a position that any firm would like to achieve

The strengths can be used to capitalize or build upon existing or emerging opportunities.

Such firms can take lead from the strengths and utilize their sources to build-up the competitive advantage.

ST (Maxi-Mini): ST is a position in which a firm strives to minimize existing or emerging threats through its strengths.

WO (Mini-Maxi): The firm needs to overcome internal weaknesses and make attempts to exploit opportunities to maximum.

WT (Mini-Mini): WT is a position that any firm will try to avoid. A firm facing external threats and internal weaknesses may have to struggle for its survival. WT strategy is a strategy which is pursued to minimize or overcome weaknesses and existing or emerging threats.

By using TOWS Matrix, a strategist can look intelligently at how he can best take advantage of the opportunities open to him, at the same time, he can minimize the impact of weaknesses and protect himself against threats. Used after detailed analysis of threats, opportunities, strength and weaknesses, it helps the strategist to consider how to use the external environment to his strategic advantage, and so he can identify some of the strategic options available to him.

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