TOWS analysis poses complementation of SWOT analysis. This approach is called “from the outside towards the inside”. While in case of SWOT analysis you need to base on strong and weak sides of the organization, and use them in a given environment, in case of TOWS analysis, the contrary assumption is taken. Strategy of the company embraces skillful adjustment of the company towards signals flowing from its environment.
Sometimes there is a situation, when results of several various strategies are similar or there are just insignificant differences. Then, it is advisable to apply a comparative analysis in case of particular variants. If you are not sure about the variant of your choice, you can also evaluate and verify all possibilities.
A defensive strategy is taken up in the least advantageous situation. The organization operates in an unfavorable environment, and additionally the internal threats are strengthened by internal weaknesses of the company. You need to try to minimize weaknesses and threats. It is very difficult because a company does not have any strong sides or opportunities, which could be used here.
Although inside the organization the strong sides prevail weaknesses, the internal assets relate to external threat. Therefore, it is a good moment to apply a conservative strategy.
A competitive strategy is applied, when weak sides overcome the strong sides inside the company, and there are opportunities dominating in the environment. The external occasions are hard to use, because they are connected with weaknesses of the enterprise.
Acceptance of an aggressive strategy should be considered in a situation, when the performed analysis suggests that opportunities prevail in the business environment, and strong sides inside the company. Therefore, the enterprise is in the most advantageous positions. The aggressive strategy consists in maximal usage of opportunities and strong side to develop dynamically.
Continue reading Aggressive strategy (maxi-maxi)
The SWOT analysis may be completed upon choosing strong and weak sides, opportunities and threats that fit into the diagram (the SWOT analysis is often presented in this form). However, its full usefulness will be revealed only when you already use results of the analysis to determine a strategic position of a company and choose the strategy.
