Application of SWOT: SWOT is the analysis which helps to identify the external forces

(Opportunities and Threats) and internal forces (Strength and weakness) on an organization. It does
not state the action to be taken. To further step, in order to analyze SWOT and to take action for
decision making, there may be four strategies can be formulated (SO-WO-ST & WT strategies) and
those can be arranged into a matrix called TOWS matrix:
TOWS Matrix
Strengths (S)

Weaknesses (W)

Brand name image of CAT

Weak in local market

TOWS MATRIX

Long list of Assets of CAT

After sale service support

Worksheet

Large and wide network of

CAT

Opportunities (O)

SO Strategies

WO Strategies

Market opportunities in

(maxi-maxi strategy)

(mini-maxi strategy)

CAT is required to realize its

CAT is required to take the

Enhancement the product

strengths and explore the

advantage of the opportunities

quality and functioning of

opportunities using this

available in the market to

CAT products and service

strength to get maximum

minimize the effect of its

business.

weaknesses.

Threats (T)

ST Strategies

WT Strategies

Competitors

( maxi-mini strategy)

(mini-mini strategy)

Engineering and technical

CAT is required to take the

CAT is required to build

expertise of local competitors

advantage of its strengths in

strong strategies to overcome

order to minimize effect of its

with the available weakness

threats.

and threats imposed by the

developing countries for CAT

Duplicate spare parts

maket.