{"id":3483,"date":"2020-09-26T00:21:22","date_gmt":"2020-09-26T05:21:22","guid":{"rendered":"http:\/\/mariusbill.com\/?p=3483"},"modified":"2020-09-26T00:21:22","modified_gmt":"2020-09-26T05:21:22","slug":"business-mastery-for-entrepreneurs-part-7-how-to-identify-the-best-strategy-for-your-business-tool-ii-tows-matrix","status":"publish","type":"post","link":"https:\/\/mariusbill.com\/de\/business-mastery-for-entrepreneurs-part-7-how-to-identify-the-best-strategy-for-your-business-tool-ii-tows-matrix\/","title":{"rendered":"Business Mastery for Entrepreneurs – Part 7: How to Identify the Best Strategy for Your Business \u2013 Tool II: TOWS Matrix"},"content":{"rendered":"![\"\"](\"http:\/\/mariusbill.com\/wp-content\/uploads\/2020\/09\/Blog-Post-14-Business-Mastery-Tool-II-final-scaled-1.jpeg\")
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In Part 5 and 6,<\/strong> we explored the SWOT analysis<\/strong>, its advantages, and why it is beneficial for entrepreneurs to use.<\/span><\/p>\nIn today\u00b4s blog post (Part 7)<\/strong>, I will share a related tool, the TOWS matrix<\/strong>. <\/span><\/p>\nIt will help you to look at your company from different perspectives so you can develop new strategic options for your company.<\/span><\/p>\nOverview<\/strong><\/span><\/p>\n\n- What is the difference between the SWOT analysis and the TOWS matrix?<\/strong><\/span><\/li>\n
- How to identify new strategic options<\/strong><\/span><\/li>\n
- What are the options you could pursue? <\/strong><\/span><\/li>\n
- How to use the TOWS Matrix<\/strong><\/span>\n
\n- Step 1: Write down your findings<\/strong><\/span><\/li>\n
- Step 2: How to create a strategic option for your business?<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n
- Summary<\/strong><\/span><\/li>\n<\/ul>\n
What is the difference between the SWOT analysis and the TOWS matrix?<\/strong><\/span><\/p>\nThe TOWS Matrix is a variation of the classic SWOT analysis. <\/strong>The main difference is that SWOT emphasizes the internal environment while TOWS <\/strong>emphasizes the external environment. <\/strong><\/span><\/p>\nHow to identify new strategic options<\/strong><\/span><\/p>\nBoth tools help you to get a better understanding of the strategic choices you can make. Now, ask yourself the following questions:<\/span><\/p>\n\n- How can I make the most of my strengths?<\/strong><\/span><\/li>\n
- How can I diminish the power of my weaknesses?<\/strong><\/span><\/li>\n
- How can I use the opportunities to my advantage?<\/strong><\/span><\/li>\n
- How can I manage the threats better?<\/strong><\/span><\/li>\n<\/ul>\n
What are the options you could pursue?<\/strong><\/span><\/p>\nUse the TOWS Matrix developed by Heinz Weihrich, Ph.D. to match external opportunities and threats with your internal strengths and weaknesses.<\/span><\/p>\n\n\n\n| <\/td>\n | External\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Opportunities<\/strong><\/span><\/td>\nExternal\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 Threats<\/strong><\/span><\/td>\n<\/tr>\n\n| <\/td>\n | \n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ul>\n<\/td>\n
\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\nInternal Strengths<\/strong><\/span><\/p>\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ol>\n<\/td>\n
Strengths-Opportunities (SO)<\/span><\/p>\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ul>\n<\/td>\n
Strengths \u2013 Threats (ST)<\/span><\/p>\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\nInternal Weaknesses<\/strong><\/span><\/p>\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ol>\n<\/td>\n
Weakness \u2013 Opportunities (WO)<\/span><\/p>\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ul>\n<\/td>\n
Weakness \u2013Threats (WT)<\/span><\/p>\n\n- <\/li>\n
- <\/li>\n
- <\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
How to use the TOWS matrix<\/strong><\/span><\/p>\nStep 1: Write down your findings<\/strong><\/span><\/p>\nThis helps you to understand what your strengths and weaknesses are, as well as to identify the opportunities and threats that you should be looking at.<\/span><\/p>\nStep 2: How to create a strategic option for your business?<\/strong><\/span><\/p>\nFor each combination of internal and external environmental factors, you can use them to create the best strategic option by asking the following questions:<\/span><\/p>\n\n- How can I use my strengths to take advantage of the opportunities (SO – Matrix)? <\/strong><\/span><\/li>\n
- How can I take advantage of my strengths to avoid real and potential threats (ST-Matrix)?<\/strong><\/span><\/li>\n
- How can you use opportunities to overcome the weaknesses I am experiencing (WO-Matrix)?<\/strong><\/span><\/li>\n
- How can you minimize your weaknesses and avoid threats (WT-Matrix)?<\/strong><\/span><\/li>\n<\/ul>\n
The WT quadrant<\/strong> creates a defensive strategy<\/strong> and will help you to protect yourself from any loss.<\/span><\/p>\nNow design a matrix that matches your individual strengths, opportunities, weaknesses, and threats combinations. To do this, construct a matrix for each quadrant (SO, ST, WO, and WT).<\/span><\/p>\n\n\n\nSO Matrix<\/span><\/strong><\/td>\nStrengths 1<\/strong><\/span><\/td>\nStrengths 2<\/strong><\/span><\/td>\nStrengths 3<\/strong><\/span><\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOpportunity 1<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOpportunity 2<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOpportunity 3<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nST Matrix<\/span><\/strong><\/td>\nStrengths 1<\/span><\/strong><\/span><\/td>\nStrengths 2<\/span><\/strong><\/span><\/td>\nStrengths 3<\/span><\/strong><\/span><\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nThreats 1<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nThreats 2<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nThreats 3<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nWO Matrix<\/span><\/strong><\/span><\/td>\nWeakness 1<\/strong><\/span><\/td>\nWeakness 2<\/strong><\/span><\/td>\nWeakness 3<\/strong><\/span><\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOpportunity 1<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOpportunity 2<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOpportunity 3<\/strong><\/span><\/td>\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nWT Matrix<\/span><\/strong><\/td>\nWeakness 1<\/strong><\/span><\/td>\nWeakness 2<\/strong><\/span><\/td>\nWeakness 3<\/strong><\/span><\/td>\n<\/tr>\n\n\u00a0<\/strong><\/span><\/td>\n\u00a0<\/strong><\/span><\/td>\n\u00a0<\/strong><\/span><\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |