STRATEGIC MANAGEMENT OF

TECHNOLOGY
SWOT, TOWS, QSPM
dr Sanja Marinković
 Strengths
Weaknesses
Opportunities
 Threats
 Evaluating the strategic position of the

organization

 Coping with changing environments

Identifying factors in the external environment of the
organization
 Opportunities
 Threats

Identifying factors within the organization

 Strengths
 Weaknesses
 PRE
SEN
T
U RE
T
FU

Opportunities Strengths
Threats Weaknesses

external environment internal environment

 FOUR STEPS of ANALYSIS

1. Identifying opportunities and threats

2. Identifying strengths and weaknesses
3. Determine correlations via mapping
4. Strategies
•Related to the external environment
• Directed to consider the interests of all partners
• Involves analyzing environmental categories:
Social, Cultural, Educational, Political, Technological,
Ecological…
OPPORTUNITIES

•Where are our good opportunities ?

•Interesting trends that need to pay attention ?
• Obstacles that we need to resist?
• What our competitors are doing?
• Whether specific changes are required of our
business, products or services?
•Whether changes in technology threaten to
destabilize our position?
•Whether any of the weaknesses of the organization
seriously threatens business?
• Related to internal environment
• Directed to performance of the organization
• Includes analysis of various business
segments with the use of indicators
 Strenghts

•What are we doing well?

•What experience do we have?
•What will we gain?
•What resources we have to
assess the strength?
•Where we make money?
•What do other people see as our
strength?
 Weaknesses

What are we doing wrong?

What should I avoid?
Where we are losing money?
What resources are we
missing?
Where are they appeal?
What can we improve?
 Strength
 Weakness
 TOWS analysis is a variant of the classic business tool,
SWOT Analysis
 TOWS analysis is a process that requires management

to think critically of its operations

 TOWS - for generating strategic alternatives.
 Without a specific implementation program, the
analysis from SWOT analysis is generally regarded as
pointless.
 TOWS can help create a plan of action.
 The TOWS Matrix illustrates how the external
opportunities and threats facing a corporation
can be matched with the company’s internal
strengths and weaknesses to result in four sets of
possible strategic alternatives.
 It provides a framework for identifying and
formulating strategies.
 Internal Strengths Weeknesses
factors S1 W1 
                                     
S2 W2 
External
S3 W3 
factors

Opportunities
S1 / O2  W1 / O1 
O1 
S2 / O1 W2 / O 2
O2 
S3 / O3 W3 / O 3
O3 

Threats
S1 / T1 W1 / T 1
T1 
S2 / T2 W2 / T 2
T2 
S3 / T3 W3 / T 3
T3 
 Strengths Weaknesses

Opportunities Strategies that use Strategies that minimize

strengths to maximize weaknesses by taking
opportunities advantage of
opportunities
Threats
Strategies that minimize
Strategies that use weaknesses and avoid
strengths to minimize threats
threats.
 Strengths Weaknesses
1. Brand name 1. Exports
2. Distribution 2. Sales force
3. Low costs
Opportunities Use existing Strengthen sales force and
1. Need for robust distribution and brand export skills. Look to
rubbish disposal name to market scented European markets
bags bin-liners (W1, W2, O2)
2. European markets (S1, S2, O3)
3. Scented bin-liners

Threats Capitalize on brand Develop capability in

1. Substitute materials name, distribution and substitute materials
2. Imports low cost to meet particularly for products
competition from imports that can be sold to export
(S1, S2, S3, T2) markets (T1, W1)
Matching between external environment and internal environment

SO S1 S2 S3 S4 S5 S6 S7
Matrix
O1 + 0 + 0 0 + +
O2 + 0 0 + 0 0 0
O3 0 0 0 + 0 0 0
O4 + + + 0 + + 0
O5 + 0 + 0 0 0 +
O6 + 0 0 0 0 0 0
O7 + + 0 + + 0 +
 ST matrix WO matrix

ST S1 S2 S3 S4 S5 S6 S7 WO W1 W2 W3 W4 W5 W6 W7
Matrix Matrix
T1 + 0 + 0 0 + + O1 + 0 + 0 0 + +
T2 + 0 0 + 0 0 0 O2 + 0 0 + 0 0 0
T3 0 0 0 + 0 0 0 O3 0 0 0 + 0 0 0

T4 + + + 0 + + 0 O4 + + + 0 + + 0

T5 + 0 + 0 0 0 + O5 + 0 + 0 0 0 +

T6 + 0 0 0 0 0 0 O6 + 0 0 0 0 0 0

T7 + + 0 + + 0 + O7 + + 0 + + 0 +

WT W1 W2 W3 W4 W5 W6 W7
Matrix
T1 + 0 + 0 0 + +
WT matrix T2 + 0 0 + 0 0 0
T3 0 0 0 + 0 0 0
T4 + + + 0 + + 0
T5 + 0 + 0 0 0 +
T6 + 0 0 0 0 0 0
T7 + + 0 + + 0 +
 Strengths Weaknesses

Opportunities Maximize on strengths Maximize on opportunities,

and opportunities minimize on weaknesses
Maxi-Maxi Maxi-Mini

Threats Maximize on strengths, Minimize on weaknesses,

minimize on threats minimize on threats
Mini-Maxi Mini-Mini
 Strengths Weaknesses

Opportunities
USAGE OF COMPARATIVE INVESTING, HOLDING,
ADVANDAGE WAITING…

Threats
MOBILIZING RESOURCES …
DEMAGE CONTROL,
SURVIVING…
1. EXPAND GLOBALLY
2. DOUBLE SALESPERSONS
3. DOUBLE ADVERTISING
4. DEVELOP NEW PRODUCTS
5. DIVERSIFY
1. JOINT VENTURE
2. ACQUIRE COMPETITOR
3. EXPAND NATIONALLY
4. BACKWARD INTRAGATION
5. FORWARD INTEGRATION
 
1. DIVERSIFY
2. ACQUIRE COMPETITOR
3. EXPAND LOCALLY
4. INCREASE PROMOTION
5. RE-ENGINEER
 
1. LIQUIDATION
2. RESTRUCTURE
3. DOWNSIZE
 
 S W
O SO WO
T ST WT

S W Present + T2
O SO WO
T ST WT
S W Present + T1
O SO WO
T ST WT

S W Present
O SO WO Time
T ST WT
Past