TOWS | SWOT Analysis is a planning method used to analyse the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. Beside that, SWOT analysis also can be used for identifying the internal and external factors that are favorable and unfavorable to achieving objective.
A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.
SWOT or TOWS Matrix is a matrix table that contained the Four SWOT factors and Four categories of Strategies.
The Four Categories of Strategies are :
1. Strengths-Opportunities (SO) Strategy
2. Weaknesses-Opportunities (WO) Strategy
3. Strengths-Threats (ST) Strategy
4. Weaknesses-Threats (WT) Strategy
Examples of Four Strategies that It might be:
Strengths
Strengths are the strong areas or attribute of the company, which are used to overcome weakness and capitalize to take advantage of the external opportunities available in the industry. Examples of what your strengths might be:
Weaknesses
Weakness are painful for the company means these are the weak factors which needs to be improve in future otherwise if they exposed to the competitors they can take the advantage of it. A weakness could be:
Opportunities
Opportunities are the chances exist in the external environment, it depends firm whether the firm is willing to exploit the opportunities or may be they ignore the opportunities due to lack of resources, Example of Opportunities might be:
Threats
Threats are always evil for the firm, minimum no of threats in the external environment open many doors for the firm. Maximum number of threats for the firm reduce their power in the industry, It could be:
One of the best example in Business is the Starbucks Corporation using the four tools (Strengths, Weakness, Opportunities and Threats)
Quality processes and procedures:
Strength
Starbucks is the largest coffeehouse company in the world and one of the very competitive organization worldwide.Aside of that starbucks corporation is a very profitable organization, earning in excess of $ 600 million in 2004. While the company generated its revenue of more than $ 5000 million in the same year. One of the strategy that can bring them as the world best coffee is their strong ethical values and ethical mission statement as follows " Starbucks is committed to a role of environmental leadership in all facets of our business.
Weaknesses
The bad side of the organization is that they are dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. But the organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.
Opportunties
The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge that's why they claim to be as the largest coffeehouse nationwide.Starbucks are very good at taking advantage of opportunties. Like last 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. Other is that they give stuff like souvenir items for their loyalty customers.Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.
Threats
Starbucks are exposed to rises in the cost of coffee and dairy products that's why many of the competitors are trying to follow the same taste of coffee in starbucks. Since its conception in Pike Place Market,Starbucks success has lead to the market entry of many competitors and copy cat brands that pose potential threats. Even though their are a lot of threats in starbucks corporation, But still the starbucks uncompromising that they will grow .
A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.
SWOT or TOWS Matrix is a matrix table that contained the Four SWOT factors and Four categories of Strategies.
The Four Categories of Strategies are :
1. Strengths-Opportunities (SO) Strategy
2. Weaknesses-Opportunities (WO) Strategy
3. Strengths-Threats (ST) Strategy
4. Weaknesses-Threats (WT) Strategy
Examples of Four Strategies that It might be:
Strengths
Strengths are the strong areas or attribute of the company, which are used to overcome weakness and capitalize to take advantage of the external opportunities available in the industry. Examples of what your strengths might be:
- Any other aspect of your business that adds value to your product or service.
- A new, innovative product or service.
- Quality processes and procedures.
Weaknesses
Weakness are painful for the company means these are the weak factors which needs to be improve in future otherwise if they exposed to the competitors they can take the advantage of it. A weakness could be:
- Lack of marketing expertise
- Damaged Reputation
- Undifferentiated products or services ( ex. In relation to your competitors
Opportunities
Opportunities are the chances exist in the external environment, it depends firm whether the firm is willing to exploit the opportunities or may be they ignore the opportunities due to lack of resources, Example of Opportunities might be:
- A developing market such as the internet
- Social changes (for example demographics)
- Merger, joint venture, or strategic alliance
Threats
Threats are always evil for the firm, minimum no of threats in the external environment open many doors for the firm. Maximum number of threats for the firm reduce their power in the industry, It could be:
- New competition in the market, possibly with new products or services
- Price wars
- Economic conditions
- Political changes
- Competitor oligopoly or monopoly
- Taxation
- Availability of resources
One of the best example in Business is the Starbucks Corporation using the four tools (Strengths, Weakness, Opportunities and Threats)
Quality processes and procedures:
Strength
Starbucks is the largest coffeehouse company in the world and one of the very competitive organization worldwide.Aside of that starbucks corporation is a very profitable organization, earning in excess of $ 600 million in 2004. While the company generated its revenue of more than $ 5000 million in the same year. One of the strategy that can bring them as the world best coffee is their strong ethical values and ethical mission statement as follows " Starbucks is committed to a role of environmental leadership in all facets of our business.
Weaknesses
The bad side of the organization is that they are dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. But the organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.
Opportunties
The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge that's why they claim to be as the largest coffeehouse nationwide.Starbucks are very good at taking advantage of opportunties. Like last 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. Other is that they give stuff like souvenir items for their loyalty customers.Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.
Threats
Starbucks are exposed to rises in the cost of coffee and dairy products that's why many of the competitors are trying to follow the same taste of coffee in starbucks. Since its conception in Pike Place Market,Starbucks success has lead to the market entry of many competitors and copy cat brands that pose potential threats. Even though their are a lot of threats in starbucks corporation, But still the starbucks uncompromising that they will grow .