What is the difference between SWOT and TOWS analysis?

SWOT Analysis has been widely applied to strategic research and competitive analysis, and has become an important analytical tool for strategic management and competitive intelligence. Its intuitive and easy-to-use analysis is an important advantage. Even without precise data support and more specialized analysis tools, convincing conclusions can be drawn.

As a result, many organizations use SWOT analysis to determine the strengths and weaknesses of their organization. SWOT analysis can be interesting, but what should you do with the information you get? This is where the TOWS matrix becomes a useful tool. It is a simple and effective way to brainstorm and develop specific strategies to address the initial SWOT findings.

What is TOWS?

TOWS analysis is a variant of the classic business tool – SWOT analysis, created by Heinz Weihrich. Find out what is SWOT. TOWS and SWOT have the same acronyms for Strengths, Weaknesses, Opportunities, and Threats, and the order of the words is reversed.

SWOT vs TOWS analysis?

So, what is the difference between SWOT and TOWS analysis? The main difference between them is that TOWS analysis focuses first on external factors. The idea is that we should start by analyzing the external forces and environment, and then consider them in conjunction with our internal capabilities.

In this way, TOWS offers something that SWOT does not. Simply put, TOWS analysis extends SWOT analysis.

From SWOT to TOWS analysis

At first glance, this may seem as simple as reversing the order of the positive and negative columns of the SWOT’s 2×2 matrix. But it’s much more than that. TOWS examines the company’s external opportunities and threats and compares them to the company’s strengths and weaknesses. This analysis forms the basis for developing a TOWS strategy and developing an actionable strategy.

What is the difference between SWOT and TOWS analysis? A SWOT matrix is ​​a planning tool, while a TOWS matrix is ​​an action tool. In a SWOT analysis, you can identify all strengths, weaknesses, opportunities and threats. To create a TOWS analysis, you need to treat each point as a single point of view. The TOWS matrix shows the relationship between external and internal factors, and strategies are selected based on these. It’s important to realize that strengths and weaknesses are concepts that don’t make much sense if you don’t put them into context or context.

Four TOWS strategies

TOWS analysis matches internal factors with external factors, and based on this, determines an appropriate action strategy. By juxtaposing opportunities and threats from the corporate environment with an organization’s strengths and weaknesses, we can identify four basic strategies. This enables companies to capitalize on opportunities, reduce threats, overcome weaknesses and build on strengths. What is the difference between SWOT and TOWS?

Advantage/Opportunity (SO):

Consider all the strengths listed in the SWOT analysis against each opportunity to determine how each internal strength can help you take advantage of each external opportunity.

Strength/Threat (ST):

Consider all the strengths listed in the SWOT analysis against each threat to determine how each internal strength can help you avoid each external danger.

Weakness/Opportunity (WO):

Consider all the weaknesses listed in the SWOT analysis one by one and use each opportunity to determine how to eliminate each internal weakness by using each external option.

Weakness/Threat (WT):

Consider all the weaknesses listed in the SWOT analysis against each threat to determine that both can be avoided.

SWOT vs TOWS Analysis – Summary

The rationale for TOWS analysis is to help you better understand the strategic options available and the ones you can pursue. You can work out which options maximize your strengths to take advantage of opportunities, while minimizing your weaknesses to avoid threats. However, before creating a TOWS matrix, you must do a SWOT.

TOWS vs SWOT ? Which is better? These two analyses are closely related to each other. None of them are worse. If you’ve ever used a SWOT analysis at work, don’t forget the extra potential hidden in this analysis. This TOWS variant will give you a better understanding of your company’s analytics.

Consider all the weaknesses listed in the SWOT analysis against each threat to determine that both can be avoided.

TOWS Example – Starbucks

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Create your own TOWS analysis using online templates

Edit this TOWS analysis template

Edit this TOWS matrix template

References

What is the difference between SWOT and TOWS analysis? (Chinese Translation) – SWOT分析后如何制定行动？结合 SWOT 和 TOWS 分析