The paper "TOWS Matrix in Understanding the Strategic Options of Companies" is an outstanding example of an assignment on business. It is apparent that in the past, most firms classify their strengths and weaknesses, and threats and opportunities in the external environment. However, what is frequently disregarded is that mixing these aspects may necessitate unique strategic choices. In order to systemize these options, the TOWS Matrix is deemed as the most effective. The TOWS Matrix assists companies in understanding the strategic options that they face and that which they can pursue (Mind Tools Ltd, 2011).
A strategy is an art which determines how firms will succeed in business (Aaker, 2005). A TOWS Matrix enables companies to maximize their strengths, circumvent their weaknesses, capitalize on their opportunities and manage their threats. Doing this necessitates matching external opportunities and threats with the company’ s strengths and weaknesses (Mind Tools Ltd, 2011). Woolworths TOWS analysis In this case it is obvious that assessing and understanding Woolworth’ s external settings, compared with the knowledge of the company’ s internal setting, and maximizing such knowledge, will facilitate Woolworth’ s supermarkets in forming its strategic options, enhance its strategic vision and mission and furthermore, take strategic actions which lead to increased returns and strategic competitiveness (Global Data, 2011).
Besides, understanding of internal and external environments will facilitate Woolworths in adapting and changing as required to its surroundings to ensure that it remains competitive. Making use of such strategies as product introduction, price competition, and advertising, Woolworth’ s supermarkets have been able to persistently compete with its rivals for a strong rank in the supermarket industry (Global Data, 2011). The following TOWS Matrix indicates how Woolworths can be able to build on its strategic options.
The aim of developing the strengths and opportunities (SO) strategies is to exploit the external opportunities, whereas the weaknesses and opportunities (WO) strategies are developed with an aim of overcoming the company’ s weaknesses by making the most use of the opportunities (Mind Tools Ltd, 2011). On the other hand, the strengths and threats (ST) strategies are developed with an aim of eliminating or minimizing threats by making use of the internal strengths, whilst the weaknesses and threats (WT) strategies are developed in order to minimize weaknesses and avoid threats (Mind Tools Ltd, 2011).
Research has revealed that companies which have been able to pursue strategic options have emerged successful in the business.