The TOWS MATRIX is an avym for Threats, Opportunities, Weakness, and Streangths. The Matrix is a variation on the swot analysis, and it seeks to address. CISMS of the Swot Analysis Regarding Its Inability to Show Relationships Between The Various Categories.
The TOWS MATRIX was deverted by Management Consultant Heinz Weihrich.
HE RECOGNIZED that the Swot Analysis -Although Highly SUCCESFUL in ITS OWN RIGHT -HAD SIGNIFICANT Shortcomings.
While The Swot Analysis Identifies Streangths, Weakness, Opportunities, And Threats, It DOES Not Make Any Attempt to Make Links Between Them.
For exmple, a business with a perceived weakness may that it as a threat.
Another Business that Identifies An Opportonity May Be Able to Match It to One of their Existing Stringths.
The TOWS MATRIX, then, is a much more useful graphical replacementation of a swot analysis.
Internet Stringths and Weaknesss are compared to exce external oppoothies and threats. Every one of the four indictors can influence and impacle. ER.
The Four Strategy Combinings of a TOWS MATRIX
In this quadrant of the TOWS Matrix, a business must assess its strengths on a case by case basis to determine if it can use them to capitalize on opportunities.
For Example, A Car Manufacturer Operation in A Luxury Car Market (Opportonity) with a Strong R & D Culture (Stream) a Feature-Packed Line of Premium s.
Here, The Business Should Assess Each Stringth Based on ITS Ability to Country or Avoid External Threes.
Returning to the Car ManuFacturer Example, Unfavorable Exchange Rates (The Threat) May Be Countracted by the Company USING ITS R & D Expertise a Factory a country with a better-valuedurrency.
In the WO Quadrant, An Organization Must Determine How ITS Weaknesses Can Be Eliminated or Office by External Opportunities.
For Example, INEXPERIENCE in Dealing with Foreign Labor Unions (Weakness) Can be overcom by hiring managers with the relevant excercence (external opportance).
In the Final Strategy Combination, The Business Assesses Each Weakness and Threat and Determines if, can be avoided.
The Car ManuFactuer with Little Experience Operation in Foreign Markets (Weakness) Can Avoid Entering that Market Altogether.
Another Maker with A Heavy Reliance on A Single Car Model (Weakness) Can resen Reduce the Threat of Competition by Developing a Range of Differen Models.
The benefits of creation a tower matrix include:
Here is a look at a sample tower matrix for amazon.
Amazon ’s Customer-CENTRISM, Excellent Brand Equity, Attractive Technology, And ConsideRables Mean It is Well-Positiond Into Additive MAR Kets.
One of the markets is the bricks-annd-mortar spie in the united states.
While The Company ’s Acquisition of WHOLE FOODS HAS Been Well Publicized, it has also launched a chain of supermarkets known as amazon go.
Early Versions of the Supermarkets We Small and More Like Convenience Stores, but A New 6,150 Square Foot, 1300-PRODUCT OUTLETLETLETLETLETLETLETLETLETLY Opened In Seattle.
In Addition to Containing No Checkouts, The Supermarket Offers Fresh Coffee or Kombucha on Tap and A Line of Made-Order Meals Prepared by In-House Chefs.
With amazon Go Stores Increasing in Prevalnce and Size, Amazon is using its technology to expand into bricks-amortar retail with a more seamless and convenient Hopping Experience.
The Ease with Which Amazon Can Expand INTO New Markets is impressive, but this stream is sometimes office by the presentitors and Markets with LT OW Entry Barriers.
In the Indian Market, for Example, The Company Has Experienced Stiff Competition from the Walmart-Backed Fllow ECOMMERCE PLATFORM SNAPDEAL.
ESTABLISHING A Presence in the Critical and Lucrative Indian Market Has Not Been Easy for Amazon.
With a $ 200 million investment in 2019, The Company Wanted to take a 49% stake in Future Coupons, The Gift Voucher Arm of India ’s Second-Larget RETAILER.
More than three Years Later, The DEAL HAS YET TO Be FinalizedSimla Investment. The Company has spent this time in a propracal Battle with RELICHICHICHICHICHICHICHICHICHICHICH IndI hest man heads.
The Importance of Closing the Deal in the Burgeoning Indian Market is Obvious, with Just Just Just Just Just, 4% of its Over 1 Billion Citizes Buying items online.
But with Walmart ’s Acquisition of Flipkart for $ 16 Billion, Indian Authorities have wary of forever. Amazon’ s Deep Pockets may h to counter this threat to its expansion.
The Company ’s Poor Performance in China is not unlike its performance in india, with Established Competitors Such as Alibaba Hindering Amazon’ s Ability To Remain C ompetitive.
Amazon Pulled itS Chinese Marketplace in 2019 and in June 2022, Annound It Would Also Be Pulling ITS Kindle E-Bookstore and App In the NEAR FUTURE.
In AnnoundCing the Move, a Company Spokesperson Noted that "with our portfolio of Business in China, we will continue to innovate and Invest where we can prove UE to our customers. "
MOVING FORAWARD, the Opportunities will be found in components of the business amazon is choosing to return in china.
TheSe Include Cross-Border ECOMMERCE and Also Cloud and Advertising Services.
How can amazon minimize its weaknesss and manage itSage it? Amazon ’s Reliance on the North American Market Could be considered a weakness, with Almost 60% of ITS 2021 Revenue Attributed to Customers in that Region.
The Company ’s Commission to Fast and Convenient Delivery Also Saw It Spend $ 77 Billion On Worldwide Shipping in 2021 - An Increase of $ 16 Billion Over 2020 and ANC Rease from 2019.
SINCE The Company Outsources Many of the Services to Third Parties, it has less Control over this expense than it would Otherwise Prefer.
This leaves the computer more vulnerable to increases in the count of transport and labor white risen significantly in 2022.
With reliance on the us Market and Transportation Costs Eating Into Profits, it is clear that amazon may have to increase the count of its prime membership program.
Recent Expansion INTO Brazil, EUROPE, and JAPAN HAS Increased Revenue Somewhat, But as they reach of Amazon ’s Logistics Platform Increases, Gistical Costs.
In August 2022, The Company Raised ITS FEES FORLLERS WHO UTILIZE ITS FULFILMENT BY AMAZON (FBA) Service to Counter Rising Inflace.
The Three of Inflation Will Need to Be Carefully Managed, However, SINCE AMAZON Will Not Want to Aliene, Round $ 80.5 Billion in Annual Sales.
Below is a Tows Matrix Example for the Boeing Company with Respect to the Four Strategy Combining
BoEING HAS Several Streangths that It can turn into Opportunities to Maintain or Increase Market Share. These Include
Here is a look at the streams that can be used to avoid external threats:
How is Boeing Turning Its Weaknesss Into Opportunities?New Delhi Wealth Management
Finally, Let ’s Look at a Weakness that May turn out to be a threat:
In this exmple, let ’s take a look at a tower matrix for dominant consumer packaged goods company process & gamble.
Proorter & Gamble Has Several Streangths that It May Be Abled into Opportunities:
Here Are Two Ways ProCTER & Gamble Can Use Inherent Streangths to Counter Threats:
Proorter & Gamble Is Turning The Follow Weaknesss Into Opportunities:
In the final quadrant, We’l Consider a Weakness that has the portal to enhance or interest with a threat:
In this tows exptle, let ’s analyze the funment company disney.
How does dismney utilize its streams and turn they into oppointunities?
What are some of the Threats Disney Can Avoid or Mitigate with ITS Streangths?
In this question, we take a look at one wayed transformation ites weakness into allTo Opportunities.
North American dependency
In 2021, Around 83% of Disney ’s Total Revenue of $ 65.39 Billion Came FROM NORICA Despite The Company’ s Globally Dominant Brand.
This dependence makes the company vulnerable to economic download, but the drivers of this site is complete.
Attempts to expand outSide of North America in the Past Have Failed, among Other Reason, BeCAUSE DISNEY DID Not Respect Cultural Norms.
Case in point is the expansion of diso Paris and Hong Kong.
While Many of Disney ’s Character and Stories Have Universal Appel, It must be able to produce content that balances the local (American) and GLOBAL Aspects of I TS AUDIENCE.
Lastly, Let ’s Describe One of Disney’ s Weaknesss that May Turn Out to be a Threat.
Competition
Disney TENDS to operate in Borderline Hyper-Competitive Markets Such as Parks and Resorts, Media, and Internet Entertainment.
Many of the reason are dynamic and Change Rapidly in Response to New Trends or Technology.
Disney ’s Reliance on the North American Market where It Also Experiences Strong Competition is a threat.
SOME of the Company ’s Competitors Can Provide Niche Products at a More Affordable Price than Disney and May Be More Resrends.
Other Competitors May Be in a Stronger Position Because A Larger Percentage of their Revenue Comes from Outside the United States.
ONE COULD Also Categorize the Recording and Sharing of Copyright Material as a Form of Competition that diso do its best to counter.
In this additional tows matrix case standy, we’l take a look at the rental company hertz.
Hertz Holds 36.1%of the Car Rental Market in the United States ahead of Competits Such as Enterprise (33.2%) and AVIS (26%). Company of its type in the world by sales, localFleet size. It operates in over 160 Countries and since it was found in 1918, has amassed significant brand value.
These Characteristics Enable Hertz to Positive Itseel As a Leader in the Ev Market. In 2023, The Hertz Electrifies Public-PRIVATE PARTNERSHIP (PPP) Colorado to Transform the Rental Industry and Accelerate The Mainstream Adoption of Electric Vehicles. The Company Plans toOffer 5,200 Rental Evs to Both Consuamers and Ride-Share Drivers Alike.
Hertz Will Also Increase Charging Capacity and Infrastic At Denver International Airport and, in Conjunction with BP Pulse, Develop A Global High-Spect Charg ING Network Starting with Various Neighborhoods in the City.
One of the primary Threats to hertz is the meaning in the white it operates. In the Era of Ride-Hailing, Car Rental and Fleet Management Companies Have Fallen Out of Favor T O some exccoment.and projective prices in peak demand periods.
Consumers Now Desire (and Indeed Expect) More Seamless and Transparent Solutions, with mobile-as-a-server (Maas) One of the most popular. E myriad carpool, ride-share, and bike-sHARE ChOIITES, demand forMaas Also Been Driven By On-Demand Bus Services and Better Integration Between Modes of Transport.
Hertz is now available Inside Apps Like WHIM WHORE SOT NOT Necessarily Travelers Can Rent Vehicles AS The Need Arises. To make urban mORE Convenient, Sustainable, And Versatile.
Hertz Also Makes Its Rental Vehicles Available to Uber and Lyft Drivers Who Want to Avoid The Costs Associated their Own Vehicles. A SimiLAR Product is available via hertz my car, a monthly car subscripting service where users renttenDifferent Purposes with Flexible Arrangements.
In Either Case, Hertz Has used its brand equity and vast very fleet to make itSelf more relatives of today.
Just A Few Months INTO The Covid-19 Pandemic, Hertz WAS FORCED to File For BankRuptcy City In Reve after Revenue and Bookings. RELIED on Airport Locations for Two-Thirds of its Revenue. When pandemic restrictions Reduced AirTravel Patronage by 94%, Hertz Lost The Majority of its Revenue Almost Overnight.
However, Just Twelve Months after the Bankruptcy Declaration and Bloated with Debt, Hertz RE-EMERGED After Investors Were Buoyed to Pre-Pre-Premic Vels. Investors Found themslves in a Bidding War to Revive the Company, with Victor Knighthead Capital Provied the CompanyWith $ 5.9 Billion in the Capital.
Hertz's Excess inventory was a weakness as travel was haltled, but it beCame an oppointunity theReaFTER once support CREASE. With many consumers turning to second-hand venestead, hertz was able to self 200,000 VehicleS over the Second HalfOf 2020 and make money on the transactions.
The Company Later USed The Funds to Make A $ 4.2 Billion Purchase of 100,000 Teslas and Kickstart Ev Ambitions.
Hertz Has Been Able to Avoid Or at Least Overcom Many of its Weaknesss. It Investested in EVS and Maas to Address the Inherner ShortFalls of Traditational Car Rental and ASEED ITS Cloud to Not only Become a PARTICIPANT But a Leader in the New Era.
In the process, hertz has reduced its reliance on Airport Locations and Unhindered Travel Which Was Achilles heel Over the Pandemic.
One Weakness That Remains at Hertz Is High Employee Turnover as a Result of Poor Company Culture and Demanding Senior Management. In 2018, 24/7 Wall St Noted That Hertz "H as some of the most diskisFied Employees of Any Large American Company "with Just AST a35% Employee APPROVAL RATING on Glassdoor.
Turnover and an undesirable culture pose a threat to the company’s long-term viability – no matter how successfully it can pivot in response to external factors.
Organizations used the swot analysis to compare external oppointunities and threats with their interungths and weaknesses.
However, It Does Not Provide Instructures on what to do with the resultant information.
The TOWS MATRIX Also Compares External Opportunities and Threats with Internet Streangths and Weakness.
The matrix, a variation of the swot analysis, Clarifies the Actions An organization can take to benefit from its findings.
What are some of the key similarities and disifrences?
The TOWS MATRIX MIGHT BE USEFUL in Assession The External and Internet Context.
However, for a deeeper understanding of the business landscape, you can use the file forces model, while will help you assess the context based on the footowing:
A variation of it is the size forcess model, which is more relative for the digital business world.
ONCE You Have Assessed the Business Landscape Via The TOWS MATRIX, You Need to Start Prioritizing the Products That Might Make Your Company Successful.
This, it will help you everurate to allocate capall toward products that has been a high portal for the organization space to keep maintain the. Products that are the core of the organization.
For that saber, the bcg matrix is a great companion, as it will tell you if products can be categorized as below:
And it will help build a so -called success sequence vs a disaster sequence.
Another Great Companion to the TOWS MATRIX is the Ansoff Matrix, Which Will Help Determine WHETHER The Expansion Strategy You ’Re USINT or NOT.
Inded, The Ansoff Matrix, Will Help You Determine Whichine of the Four Strategies Below Might Be More Effective to Further Grow the Business!
Failure Mode and Effects Analysis
Agile Business Analysis
Business Valuation
Paired Comparison Analysis
MONTE Carlo Analysis
Cost-BENEFIT ANALYSIS
Catwoe analysis
Vtdf framework
Pareto Analysis
Comparable Analysis
SWOT Analysis
Pestel Analysis
Business Analysis
Financial Structure
Financial Modeling
Value Investing
Buffet indicator
Financial Analysis
Post-Mortem Analysis
Retrospective Analysis
Root cause analysis
BlindSpot Analysis
Break-Even Analysis
Decision Analysis
Destep analysis
Steep Analysis
Steeple Analysis
Activity-based management
PMESII-PT Analysis
Space Analysis
Lotus Diagram
Functional Decomposition
Multi-Criteria Analysis
Stakeholder Analysis
Strategic Analysis
Sfa matrix
Hoshin Kanri X-Matrix
Kepner-Tregoe Matrix
Eisenhower Matrix
Action Priority Matrix
TOWS MATRIX
Ge McKinsey Matrix
Bcg matrix
Growth Matrix
Ansoff Matrix
Kracjic Matrix
Product-Process Matrix
Mendelow Stakeholder Matrix
Requirements Traceability Matrix
Value/Effort Matrix
Decision matrix
Cash Flow Statement Matrix
Grand Strategy Matrix
Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-TO-BE DONE, Design Thinking, Lean Startup Canv as, value chain, value proposition canvas, balanced scorecard, Business Model Canvas, SWOT, SWOTAnalysis, Growth Hacking, Bundling, Unbundling, Bootstrapping, Venture Capital, Porter's Five Forces, Porter's GENERIC Strategies, Porter's Five Forces, PE STEL Analysis, Swot, Porter's Diamond Model, Ansoff, Technology Adoption Curve, TOWS, Soar, Balanced ScoreCard, OKR,Agile method, value proposition, VTDF Framework, BCG MATRIX, Ge McKinsey Matrix, Kotter's 8-STEP CHANGE MODEL.
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