INTRODUCTION The TOWS (threats, opportunities, weaknesses, strengths) matrix is a two-cell by two-cell matrix that assists companies in determining strategic alternatives by examining external opportunities and threats and how they compare to a company’s existing strengths and weaknesses
INTRODUCTIONThe TOWS (threats, opportunities, weaknesses,
strengths) matrix is a two-cell by two-cell matrix that assists
companies in determining strategic alternatives by examining
external opportunities and threats and how they compare to a
companys existing strengths and weaknesses
TOWS MATRIX2This is a Germany based company in to manufacturing
of automobile.
In 1980s company wanted to enter in to US market
Case discusses TOWS analysis done for them.
Application of TOWS Matrix to Volks WagonTows AnalysisIT-Strong
R & D and Engineering-Strong Sales and Service Network-
Efficient Prod / AutomationCapabilitiesIW- Heavy Reliance on One
Product- Rising Costs in Germany- No Experience With U.S.
LaborUnions if Building Plant in the U.S.EO - Growing Affluent
Market DemandsMore Luxurious Cars with ManyOptions- Attractive
Offers to Build anAssembly Plant in U.S.- Chrysler and American
Motors NeedSmall EnginesSO - Develop and Produce MultiproductLine
with Many Options, in DifferentPrice Classes ( like desser,Audi
Line)- Build Assembly Plant Using R & D,Engineering. - Build
Engines for Chrysler and AMCWO - Develop Compatible Models for
Different Price Levels (Ranging from Rabbit to Audi )- To Cope with
Rising Costs in Germany, Build Plant in U.S., HiringU.S. Managers
with Experience inDealing with U.S. Labor UnionsET - Exchange
Rate:Devaluation of Dollar in Relation toDeutshe Mark (DM)-
Competition from Japanese andU.S. Automakers- Fuel Shortage and
PriceST - Reduce Effect of Exchange Rate byBuilding a Plant in the
U.S. - Meet Competition with AdvancedDesign Technology - Improve
Fuel Consumption ThroughR & DWT - Overcome Weaknesses by
MakingThem Strengths (Move Toward OSStrategy)- Reduce Threat of
Competition byDeveloping Flexible Product Line CONCLUSIONThere are
different ways of analyzing the situation. One is to begin with the
identification of important problems. A second approach is to start
with determining the purpose and objectives ofthe firm. A third way
is to focus on
opportunities.Volkswagen.comhttp://www.mindtools.com/pages/article/newSTR_89.htmhttp://thebuzzfactoree.com/making-a-tows-matrix-its-a-swot-analysis-on-speed/References
