SWOT

Analysis and
TOWS Matrix

PAYAL PARIKH
 Objectives for learning

What is SWOT Analysis.

Aim of SWOT Analysis.
Who needs SWOT Analysis.
How to conduct SWOT Analysis.
Characteristics of SWOT Analysis.
 Strengths Weaknesses

SWOT Opportunities Threats

stands
for
 What is SWOT Analysis

A method that allows a group or individual to shift from everyday

problems and traditional approaches to new perspectives.
SWOT Analysis looks at strengths, weaknesses (internal factors)
and opportunities and threats (external factors) that your
organization/business faces.
The swot analysis framework is an extremely important and
useful tool for business.
 What is SWOT Analysis
Strength

Characteristics of the business or a team that gives it an advantage

over others in the industry.
Positive tangible and intangible attributes, internal to an
organization.
Beneficial aspects of the organization or the capabilities of an
organization, process capabilities, financial resources, products and
services, customer goodwill and brand loyalty.
Examples- Abundant financial resources, well-known brand name,
economies of scale.
 What is SWOT Analysis
Weakness

Characteristics that place the firm at a disadvantage relative to

others.
Detract the organization from its ability to attain the core goal and
influence its growth.
Weaknesses are the factors which do not meet the standards we
feel they should meet. However, weaknesses are controllable. They
must be minimized and eliminated.
Examples- Limited financial resources, weak spending on R & D.
 What is SWOT Analysis
Opportunities
Changes to make greater profits in the environment- External
attractive factors that represent the reason for an organization to
exist and develop.
Arise when an organization can take benefit of conditions in its
environment to plan and execute strategies that enable it to
become more profitable.
Organization should be careful and recognize the opportunities
and grasp them whenever they arise.
Examples- Rapid market growth, rival firms and complacement,
changing customer need.
 What is SWOT Analysis
Threats

External elements in the environment that could cause trouble for

the business- External factors, beyond an organization's control.
Arise when conditions in external environment jeopardize the
reliability and profitability of the organization's business.
Compound the vulnerability when they relate to the weaknesses.
Threats are uncontrollable. When a threat comes, the stability and
survival can be at stable.
Examples- Entry of foreign competitors, introduction of new
substitute products.
Aim of SWOT Analysis

O
S

T
W
 Aim of SWOT Analysis

To help decision makers share and compare ideas.

To bring a clearer common purpose and
understanding of factors for success.
To organize the important factors linked to sucess and
failure in the business world.
To provide linearity to the decision making process
allowing complex ideas to be presented
systematically.
 TOWS Matrix

Tows Matrix is same as SWOT analysis, which helps the company

to analysis the internal and external factors i.e., Strength,
Weakness, Opportunities and Threats. The only difference
between them is that SWOT analysis only give the description
about internal and external factor whereas TOWS matrix shows
the relation between internal and external factor so that
company can frame their strategies to take maximum benefit
from it.
TOWS Matrix
Strength (S) Weakness (W)

Opportunities SO Strategies WO Strategies

(O) Using internal Taking advantage of
strengths to take external opportunities
advantage of external to offset or mitigate
opportunities internal weakneses

ST Strategies
Threats (T)

WT Strategies
Using internal Strategies and tactics
strengths to mitigate that minimize both
or minimize external internal weaknesses
threats and external threats.
There are 4 combinations of
TOWS Matrix

55% SO Strategies

55% WO Strategies

55% ST Strategies

55%
WT Strategies
 TOWS Matrix

SO Strategy

This strategy is also name as Maxi-Maxi strategy. SO Strategy tells

about how to utilise your Internal strength to grab External
opportunity. For example high brand loyalty and goods quality,
helps the company to enter into new market or launch new
product.
 TOWS Matrix

WO Strategy

This strategy is also said as Mini-Maxi Strategy. This strategy tell

the company to strengthen their weaknesses to take benefit of
prevailing opportunities. For example, product high price is
creating a hindrance to enter in a new market. Therefore by
upgrading production technology can lead to reduction in price of
product.
 TOWS Matrix

ST Strategy

This strategy is also name as Maxi-Mini Strategy. In this company

tries to minimize threats by their strength. This strategy
empowers the company, because by this company knows why
they are existing and how they can manage external threats. For
example, because of good quality and company's reputation we
can avoid the risk for foreign or external competitor.
 TOWS Matrix

WT Strategy

This strategy is also known as Mini-Mini Strategy. This can be

considered as a defensive strategy, where company tries to
strengthen their weakness and avoid any external threats. For
example, if a company is not having sufficient fund and on the
other hand competitors have also increased which results to
decrease in the demand. Therefore we have to focus on this
aspect.
Thank you