The value of the TOWS Matrix in strategy formulation and generating strategic alternatives?

TOWS and SWOT are both acronyms for the words threats, opportunities, weaknesses and strengths. SWOT uses strengths and weaknesses to combat threats and capitalize on opportunities. TOWS matches external opportunities and threats with a company’s internal strengths and weaknesses. Aren’t they the same? “At a practical level, the only difference between TOWS and SWOT is that TOWS emphasizes the external environment whilst SWOT emphasizes the internal environment.” (Mind Tools. 2007. para. 4.)
The TOWS Matrix produces four potential strategy alternatives based on the pairing of threats, opportunities, weaknesses and strengths. The result is:

SO Strategies (strengths and opportunities) focuses on the external factor of opportunities and the internal factor of strength. This strategy uses strengths to capitalize on opportunities. WO Strategies (weaknesses and opportunities) focuses on the external factor of opportunities and the internal factor of weaknesses. This strategy takes advantage of opportunities by overcoming weaknesses. ST Strategies (strengths and threats) focuses on the external factor of threats and the internal factor of strengths. This strategy utilizes strengths to avoid threats. WT Strategies (weaknesses and threats) focuses on the external factor of threats and the internal factor of weaknesses. This strategy attempts to limit weaknesses while staying clear of threats.

I do agree with utilizing the TOWS Matrix for strategic alternatives. Whereas SWOT provides information helpful in determining the strengths, weaknesses, opportunities and threats of a company’s, the TOWS matrix expands on this area by matching internal and external factors for generating additional strategic alternatives. It helps you gain a better understanding of the strategic choices that you face and the options you could pursue.

“This (TOWS Matrix) is a good way to use brainstorming to create alternative strategies that might not otherwise be considered.” (Hunger and Wheelen. 2008. Pg 144.)

The TOWS Matrix does more than just list the threats, opportunities, weaknesses and strengths a company faces. Instead of simply providing lists, it creates strategic alternatives in an action based formats. It pairs internal and external factors in an effort to provide the best alternative for a company in light of its current condition. It helps management evaluate not only the 4 factors facing the company, but how they match up and can be used together in an effort to generate various strategic alternatives. Without the TOWS Matrix, and the correlation of both internal and external factors, various alternatives may not be recognized as possible solutions.

However, management must realize that, “. . . using a TOWS Matrix is only one of many ways to generate alternative strategies.” (Hunger and Wheelen. 2008. Pg 145.)


Mind Tools - Essential Skills for an Excellent Career. Using the TOWS Matrix. Retrieved March 2, 2007, from Mind Tools. Website: http://www.mindtools.com/pages/article/newSTR_89.htm

Hunger, David J. & Wheelen, Thomas L. (2008). Concepts in Strategic Management and Business Policy. New Jersey: Pearson Prentice Hall