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Tows Matrix
Tows Matrix
The TOWS matrix is a variant of the SWOT analysis, which is another popular
strategic planning method often used when devising marketing plans. Both of these
techniques require marketers to first identify a company or product's strengths,
weaknesses, opportunities and threats. However, while a SWOT analysis aims to use
strengths and weaknesses to reduce threats and maximize opportunity, the TOWS
matrix identifies external opportunities and threats and compares them to a company’s
internal strategies and weakness.[ CITATION TOW \l 17417 ]
Strength Weakness
1. Maxis have a strong
1. Maxis always
brand image and as
the market leader in disturbing customers
Malaysia.
by advertisement.
2. Provide different plan
for different target 2. Maxis have bad
groups
broadband service
3. The technology and
partnership of Maxis (products).
4. Have strong and
3. Maxis have bad
experience
management team customer service.
4. Maxis will get
interruption of the line
at certain area.
Opportunity SO strategies WO strategies
1. Potential for triple 1. Collaborate with Astro
1. Gives more reward to
play to do triple play
2. Young demographics 2. Make different plan attract customer ( W1,
that is data hungry that provide more data
O2,O3)
3. Wireless market in plan
Asia Pacific has 3. Develop new 2. Give Utilize the latest
experienced a rapid technology
technology to improve
growth
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4. Rapid development of the
new technology and
service(W2,W4,O4)
devices
Threats ST strategies WT strategies
1. Rapid Technology 1. Invest more in doing
1. Offer more valuable
Changes needing research
capital infusion 2. Use competitive package or use
2. Competitive Pressure advantage to
differential pricing
causing pressure on overcome other
margins competitors strategy (W4, T2, T3)
3. Global Economic
2. Pursue customer
Slowdown impacting
growth engagement strategy
4. Market share decrease
and meet the customer
satisfaction (W3, T2)
ST strategies in TOWS matrix is strategies that use strategies to minimize threat. The
rapid change in technology is a problem occur in this industry, to solve it maxis may
invest more on research program to make sure company can follow the trend. Since
the global economic slowdown had impact the growth, we suggest that maxis may use
competitive advantage to overcome other competitors.
In TOWS matrix, WO strategies means that uses the Maxis opportunities to overcome
the weaknesses. Maxis have more advertisement and this create a disturbing point for
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customer. Nowadays, almost everyone have their own smart phone. Life has become
very dependent on the smart phone, especially for young people. The young people
rely on the data plan for entertainment, search for information, and access the social
network (Facebook). Therefore, the young users are more data hungry. In order to
solve the problem of disturbing by advertisement, Maxis can offer some reward to the
customer such as offer small gigabytes data to customer. This can let the customer
enjoy more data usage and they are more willing to receive advertising. But the
reward must give parallel with the advertising that sends to the customer. So that, the
customer do not feel bother and disturb. Conversely, customers are more hunger to
receive advertising and get the free data usage.[ CITATION qis131 \l 17417 ]
In TOWS matrix, the WT strategies refer to how the Maxis Company can minimize
weaknesses and avoid threats. Maxis can offer a valuable package to consumer, even
though in some area the line maybe interrupt, but the consumer are more willing to
take the package because can save more money due to the economic slowdown.
Moreover, if Maxis offer a valuable package, they will be able to compete with it
competitor such as DIGI, Celcom, U mobile and other. Maxis should lower down the
price to compete with it competitor. At the end, Maxis will get more customers due to
the cheaper price offer and able to boost the sales, and get more margins.[ CITATION
qis131 \l 17417 ]
As a company, Maxis should understand the expectation of each customer, and when
the customer facing problem the employee should really pay full attention to
customer’s problem and try their best to offer good solution to the customer. But,
employee of Maxis fail to do so. A lot of bad comment receive about the poor
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customer service and lead to the customer lose confidence to Maxis. At the end,
customer feel disappointed and shift away to Maxis’ s competitor. In order to solve
this problem, Maxis should give training in enhancing the employee’s knowledge and
also upgrade their complaint handling skills. So that, the employee of Maxis will
become more professional and have suffient knowledge to deal with the issue faced
by customer. In addition, employee can quickly appease the customer and help them
to solve the problem immediately. The phrase “The customer is always right” was
originally coined by Harry Gordon Selfridg, Maxis should adopt this policy in the
company. The objective of this policy are to convince customers that they will get
good service at this company and also convince employees to give customers good
service. If the customer always feel satisfied, they will become the loyal customer and
do not shift away from Maxis.[ CITATION Ale08 \l 17417 ]
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