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TOWS Matrix

November 26, 2013

Shruti Mittal
Sarvesh Mittal

Agenda Introduction Stages of TOWS analysis Strategies Case Study 2 .

Agenda Introduction Stages of TOWS analysis Strategies Case Study 3 .

exploit opportunities. Guidelines derived are company should avoid threats. It helps in determining current condition and growth potential of the company. involving systematic and comprehensive assessment of external and internal factors. strengthen its weaknesses and base important activities on its strengths. .Introduction     4 Acronym of SWOT TOWS analysis is an algorithm of the strategic analysis process.

Step 2 .Activities necessary to develop strategies. so as achieve the enterprise's overall objectives. Step 3 . focuses on the internal resources of the enterprise.Process of Strategy Formulation      5 Step 1. Step 5 .Contingency plans must be prepared . Step 4 . tactics and specific actions are carried out.Deals with some basic questions pertaining to the internal and external environments.Concern primarily the present and future situation in respect to the external environment.Audit of strengths and weaknesses.

Agenda Introduction Stages of TOWS analysis Strategies Case Study 7 .

fix it. Not just the products but the whole company if necessary”.make it better. – Bill Saporito 8 .“Whether its broke or not.

STAGES OF TOWS ANALYSIS 9  Identification of opportunities and threats  Identification and analysis of strengths and weaknesses  Determination of strategic position and direction of business development .

Agenda Introduction Stages of TOWS analysis Strategies Case Study 10 .

Strategies     SO Strategy : “Maxi-Maxi” ST Strategy : “Maxi-Mini” WO Strategy : “Mini-Maxi” WT Strategy : “Mini-Mini” .TOWS Matrix .

TOWS Matrix . This situation corresponds to the maxi-maxi strategy: strong expansion and diversified development.Strategies  SO situation strategy : In this situation company has the more vulnerabilities . 12 .maxi-maxi strategy : This situation applies to the company for which dominates strengths in the environment and opportunities within. but its environment gives more opportunities. The strategy should include the use of these opportunities while reducing or correcting weaknesses within the organization.  WO situation .

. Mini-mini strategy boils down to a pessimistic version of the liquidation or in optimistic situation . or merger with another strategy :The company in this case is devoid of any development opportunities. It does not have significant strengths. which could withstand threats. and its potential for change is strive for survival. The company may use large internal strengths in attempt to overcome threats from environment.TOWS Matrix .Strategies 13  ST situation . It operates in hostile environments.  WT situation .maxi-mini strategy : The source of development difficulties for the company are unfavorable external conditions (prevalence of threats).

Agenda Introduction Stages of TOWS analysis Strategies Case Study 14 .

Apple – TOWS Matrix Internal Strengths (S) •Strong brand image •Financial position  •Product differentiation •Apple Retail strategy •Manufactures Hardware and Software •Most user friendly GUI Weaknesses (W) •Patent lawsuit •Apple iOS uses Google maps •Pricing •Product line is short •Protective strategy External Opportunities (O) •Uncovered Markets •Strong growth in smartphone and tablet markets •Loyal Customers SO Strategies WO Strategies •Apple’s brand recognition •Global expansion through Mexico. south strengthen by offering less east asia. •Long term agreements between Apple Inc.Tizen •Purchase voice and data network to complement the smartphone division will help acquire stronger market position •Focus on supply chain. France and   Australia. and the   suppliers to guarantee production commitments •Continue investment in technology in order to stay   ahead of competitors and become a market leader . expensive version of each product to   appeal to lower income market •Develop product for business segment •Improve customer Experience Threats (T) ST Strategies WT Strategies •Rising popularity of Google Android & other operating system •Technology Innovation •Supply System •Samsung has lauched its own OS. •Focus on R&D. throughout all its markets   can Portugal.

Samsung – TOWS Matrix Internal External Opportunities (O) Strengths (S) •Hardware integration with many open source OS and softwares •Excellence in engg and producing hardware parts and consumer electronics •Innovation and design •Development of new OS (Tizen) •Low production costs •Largest share in mobile phones •Ability to market the brand SO Strategies Weaknesses (W) •Patent infringement •Too low profit margin •Main competitors are also largest buyers •Lack its own OS and software •Focus on too many products WO Strategies •Growing India’s smart phone market •Growing mobile advertising industry •Growing demand for quality application processors •Growth of tablets market •Obtaining patents through acquisitions •Tapping markets like India with low prices •Develop new technologies to avoid patent issues •Improve Brand Image Threats (T) ST Strategies WT Strategies •Focus on R&D to sustain the technological disruptions •Penetration into the untapped third world countries •Scale-up development of new technologies for hardware production •Focusing on cost reduction •Tie-ups with service providers •Concentrating focus on fewer products and improve quality •Long term agreements with Corporate clients who are also competitors •Bringing better designs with better quality •Improving Customer experience •Saturated smart phone markets in developed countries •Rapid technological change •Declining margins on hardware production •Breached patents •Apple’s Tie-up with Reliance(India) •Price wars •Improving Customer Service to make them loyal to the brand •Focus on launching Tizen OS •Strive for margin expansion without compromising on the volumes by cutting costs .

Thank you 17 .