TOWS analysis
TOWS analysis is a form of business analysis, a kind of extension of the well-known SWOT analysis framework.
TOWS is an acronym for Threats, Opportunities, Weaknesses, and Strengths.
This form of analysis is used as a strategic planning tool.
It can add key value to the company by focusing instead on aligning internal factors with the external aspects of the company’s environment.
The primary purpose of this analysis is to reduce threats, seize opportunities, exploit strengths, and finally remove weaknesses.
What are the components of a TOWS analysis template?
First, the TOWS analysis template involves matching internal strengths with external capabilities (SO).
It enables the company to develop the so-called the “maxi-maxi” strategy that has the greatest potential for success.
In this roadmap, the company can leverage strengths to respond to potential market opportunities.
The other extreme is the “mini-mini” strategy, emphasizing the organization’s vulnerability to threats based on its weaknesses (WT).
This is the perfect strategy to avoid potential threats and minimize weaknesses.
It is worth mentioning that in addition to these radical two approaches, we can also divide two strategies between – “mini-maxi” and “maxi-mini”.
The first one can give an important answer to the question of how opportunities can remove weaknesses (CA).
Last but not least, or “Maxi-mini”, which uses strengths to minimize the risks (ST).
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