How to Use the TOWS Matrix to Analyze and Set Strategy

This guided project will allow you to use the TOWS matrix for analysis and to determine your optimal strategy. The acronym TOWS Matrix stands for Threats Opportunities Weaknesses Strengths. The TOWS Matrix is built from the elements of the SWOT Analysis. TOWS reorganizes the information and gives a framework for identifying possible strategic options. TOWS analyzes both internal and external factors to identify strategic options. Four basic strategies can be created by combining the external environment's opportunities and risks with the strengths and weaknesses of the internal organization. The strategies focus on exploiting opportunities and minimizing threats, overcoming weakness, and capitalizing upon strengths. To demonstrate the model's effectiveness, we will use a spreadsheet that analyzes an energy service company. The case study will give you the tools to apply the model to your own company or to analyze any other company. To develop strategic alternatives, the TOWS Matrix can be used as a decision-making tool. TOWS Analysis can be used by both startups and large companies as a primary strategy planning tool. The matrix will allow you to identify your competitive advantage, brainstorm potential strategic options and determine your strategic roadmap at the end of your project.