SWOT vs TOWS

"Many people think that strategy is just about having a plan"

But in true essence, strategy is about understanding the current situation and desired future and identifying the drivers to reach that future state.

A simple but effective tool that can help to analyze context and make smarter choices.

It’s called SWOT.

Leverage strengths to create value and stand out from the competition. Like: unique selling proposition, competitive advantage, core competencies, etc.

Address weaknesses to gain an edge and prepare for the future. Like: improving performance, eliminating gaps, overcoming barriers, etc.

Assess internal capabilities and identify strengths and weaknesses. For example, might evaluate resources, skills, processes, culture, reputation, etc.

Scan the external environment for opportunities and threats that could affect goals. Like: market trends, customer needs, competitor actions, and technological changes.

There’s more to SWOT than meets the eye.

There’s a way to make it even more powerful and dynamic. It’s called TOWS.

TOWS is SWOT in reverse. It’s a technique that helps to:

Anticipate the external environment and use opportunities and threats as catalysts for innovation. Like: exploit new markets, solve customer problems, leverage emerging technologies, etc.

Develop new products or services that capitalize on strengths and deliver value to customers. Like: launch new offerings, expand portfolio, diversify revenue streams, etc.

Transform weaknesses into strengths by embracing change and learning from challenges. Like: innovate processes, adopt best practices, foster a learning culture, etc.

So what’s the difference between SWOT and TOWS?

Well, here’s how I see it:

Companies that use SWOT want to be market leaders.

They focus on improving their current position and performance. They aim to do things better than their competitors.

Companies that use TOWS want to lead the market.

They focus on creating new possibilities and opportunities. They aim to do things differently from their competitors.

Strengths & Opportunities: Leverage internal capabilities and resources to take advantage of external factors toward the goals. Like: using a strong brand reputation to attract more customers and increase sales when there is a growing demand for products.

Strengths & Threats: Use internal capabilities and resources to counteract the external factors that can hinder progress or harm performance. Like: a loyal customer base to retain market share and fend off the competition when there is a new competitor in the market.

Weaknesses & Opportunities: Improve internal capabilities and resources to exploit the external factors that can help achieve goals. Like: improve the website and social media channels to reach more customers and increase online sales when there is a growing trend of e-commerce.

Weaknesses & Threats: Improve internal capabilities and resources to avoid external factors that can hinder progress or harm performance. Like reducing costs and optimizing operations to survive the downturn and maintain profitability when there is a recession in the economy."

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