When it comes to strategic planning, it is crucial to analyze your organization’s strengths, weaknesses, opportunities and threats - often referred to as a SWOT analysis - in order to determine how to effectively capitalize on these characteristics and ultimately thrive in the market. The idea is to identify these four components in order to make the most of your organization’s strengths, work around your weaknesses, deal with external threats, as well as capitalize on opportunities in the environment.
However, there is a lesser known variation of the SWOT analysis - namely, the TOWS analysis - that should be taken into consideration as well. While both methods focus on internal strengths and weaknesses and external opportunities and threats, TOWS focuses externally, while SWOT is internally focused.
In other words, while SWOT starts with identifying internal strengths and weaknesses (and then identifying the corresponding external opportunities and threats), TOWS starts by identifying external opportunities and threats, and then finding the strengths and opportunities to match.
Questions to ask yourself: How will your organization capitalize on opportunities and avoid threats, given your strengths? How will your company use the identified opportunities and threats to lessen or rise above weaknesses?
In crafting your TOWS analysis, it can be helpful to draw out a matrix. After that, it is important to identify what kind of strategy you are leaning towards. A “maxi-maxi” strategy focuses on using strengths to maximize opportunities, while a “maxi-mini” strategy focuses on using strengths to minimize threats. A “mini-maxi” strategy minimizes weaknesses by taking advantage of external opportunities. Finally, a “mini-mini” strategy minimizes weaknesses in an effort to reduce or avoid external threats.
Regardless of which type of strategy your organization chooses, it is important that it makes strategic sense. The ultimate goal in a TOWS analysis is to use your environment to your strategic advantage, while proactively in ensuring that you are circumventing any threats to your company that you have identified in the market. Further, alignment is key. Not only should your strategy reflect the characteristics of your company; it should also be in alignment with your organization’s mission and vision.
Angelo Ponzi is a Fractional Chief Marketing Officer and Brand Strategist. He has over 25+ years of business experience in sales, marketing, branding, strategic planning and market research. His senior level expertise includes developing and directing comprehensive market/product plans, branding and communications plans and strategic business planning for a variety of business-to-business, financial, consumer, medical, package goods, general retail, restaurants and high-tech clients.
He has led both small and large teams at global, national, regional and start-up companies, as well as worked with products in all stages of their lifecycle, from inception to implementation. Previous positions have been on both the client and advertising agency sides of the business giving him a unique understanding of his client’s business operations, sales, marketing and communications needs.
To learn more, visit www.theponzigroup.com