TOWS MATRIX

Developing Strategies
THE SWOT ANALYSIS
THE TOWS MATRIX
TOWS

• Threats
• Opportunities
• Weaknesses
• Strengths
 INTERNAL FACTORS STRENGTHS WEAKNESSES

EXTERNAL FACTORS

OPPORTUNITIES

THREATS
 INTERNAL FACTORS WEAKNESSES
STRENGTHS
Internal Strengths (S) Internal Weaknesses (W)

Such as in product depth, quality, pricing, Such as weaknesses in positioning,

distribution, packaging, and merchandising, advertising, promotions, and territorial
among others coverage, among others

EXTERNAL FACTORS

OPPORTUNITIES
External Opportunities (O)

Such as future economic conditions,

political and social changes, new
products, services, and technology,
among others

THREATS
External Threats (T)

Such as anticipated energy

shortages, competition, and
legislation adversely affecting one’s
industry, among others
 INTERNAL FACTORS STRENGTHS WEAKNESSES
Internal Strengths (S) Internal Weaknesses (W)

Such as product depth, quality, pricing, Such as weaknesses in positioning,

distribution, packaging, and merchandising, advertising, promotions, and territorial
among others coverage, among others

EXTERNAL FACTORS

OPPORTUNITIES SO STRATEGIES WO STRATEGIES

External Opportunities (O) (Maxi-Maxi Strategies) (Mini-Maxi Strategies)

Such as future economic conditions, Potentially the most successful strategies, Usually strategies developmental in
political and social changes, new utilizing the firm’s strengths to take advantage of nature intended to overcome weaknesses
products, services, and technology, opportunities in order to take advantage of
among others opportunities

THREATS ST STRATEGIES WT STRATEGIES

External Threats (T) (Maxi-Mini Strategies) (Mini-Mini Strategies)

Such as anticipated energy shortages, Strategies that use organizational strengths to Fall-back strategies that typically involve
competition, and legislation adversely cope with or avoid imminent threats retrenchment, liquidation, or the
affecting one’s industry, among others engagement in joint ventures
 INTERNAL FACTORS STRENGTHS WEAKNESSES

1. Highest industry liquidity 1. Low net profitability

2. Largest capacity machineries 2. High level of receivables
3. Most extensive distribution system 3. Unattractive product packaging

EXTERNAL FACTORS

OPPORTUNITIES

1. Increasing market size

2. Weak competition from domestic
companies
3. Increasing consumer disposable income

THREATS

1. Rising material costs

2. Increased competition from imported
products
3. Potential government price control
regulation
 INTERNAL FACTORS STRENGTHS WEAKNESSES

1. Highest industry liquidity 1. Low net profitability

2. Largest capacity machineries 2. High level of receivables
3. Most extensive distribution system 3. Unattractive product packaging

EXTERNAL FACTORS

OPPORTUNITIES  Flood existing market with low-priced  Implement operating cost-cutting

product (S2, S3, O1, O2, O3) program (W1, O1, O3)
1. Increasing market size  Introduce cash discounts to accelerate  Upgrade product image through package
2. Weak competition from domestic future consumer purchases (S1, O1, O3) revision (W3, O1, O3)
companies
3. Increasing consumer disposable
income

THREATS  Block-off competitive retail displays  Study possibility of industry switching

through extensive retail space (W1, T1, T2, T3)
1. Rising material costs purchases  Communicate desire to merge with local
2. Increased competition from imported (S1, S3, T2) competitor (W1, T2, T3)
products
3. Potential government price control
regulation
NOTES IN TOWS MATRIX
• Strengths, Weaknesses, Opportunities,
and Threats must correspond with
condensed SWOT as indicated in the
SWOT Matrix
• Strengths, Weaknesses, Opportunities,
and Threats must be in their correct
placements in the TOWS Matrix
• Strengths, Weaknesses, Opportunities,
and Threats must be sequentially
numbered
• Combination strategies and their Action
Plans must be in their correct placement
in the matrix
• Combination strategies must indicate in
parenthesis from whence their
combined factor(s) were acquired
• Action Plans under each combination
strategy, when properly implemented,
must lead to the successful
implementation of the combination
strategy under which they are classified
STRATEGY CLASSIFICATIONS

FORWARD INTEGRATION
• Strategy proposing gaining ownership or
increased control over distributors or
retailers
• Proposing Philippine Daily Inquirer buy
418 newspaper stands in Metro Manila
 BACKWARD INTEGRATION
• Strategy proposing ownership or
increased control of a firm’s suppliers
• Proposing Nestle Philippines purchase a
cow farm and dairy facility in General
Santos City
 HORIZONTAL INTEGRATION
• Strategy proposing purchase or
increased control over competitors
• Proposing Pizza Hut purchase Yellow
Cab
 MARKET PENETRATION
• Strategy proposing increased market
share for present products or services in
present markets through greater
marketing efforts
• Proposing Krispy Kreme launch a P56
million advertising campaign directed at
current customers
 MARKET DEVELOPMENT
• Strategy proposing introducing present
products or services into new
geographic area
• Proposing opening a University of Santo
Tomas in Tagaytay City
 PRODUCT DEVELOPMENT
• Strategy proposing increased sales by
improving present products or services
or developing new ones
• Proposing Coca-Cola introduce Coke in
tetra pack
 RELATED DIVERSIFICATION
• Strategy proposing adding new but
related products or services
• Proposing Motolite introduce solar
automotive batteries
 UNRELATED DIVERSIFICATION
• Strategy proposing adding new,
unrelated products or services
• Proposing Banco de Oro open a chain of
BDO ice cream parlors
 RETRENCHMENT
• Strategy proposing regrouping through
cost or asset reduction to reverse
declining sales and profits
• Proposing Shoemart sell-off its
Hardware Department and lay-off 847 of
its Department employees
 DIVESTITURE
• Strategy proposing selling a division or
part of an organization
• Proposing Shoemart sell all its
Hypermarts
 LIQUIDATION
• Strategy proposing selling all of a
company’s assets, in parts or as a whole,
for their tangible worth
• Proposing SM Prime Holdings sell all
their companies and have the Sy family
retire from business
COST LEADERSHIP
DIFFERENTIATION
FOCUS
Enumerating the Strategies to be
Implemented

What is the current market situation?

What is your strategy?
What strength you are capitalizing on?
What are the operational details of your
Or
strategy?
What opportunity are you taking
How will it benefit your new product?
advantage of? or

What weakness are you trying to Classify all your strategies

How will it help attain your marketing
eliminate? Or under Product, Price, Place,
objectives?
and Promotion.
What threat you are trying to
Include Tables or Exhibits, if necessary.
neutralize? or Develop a detailed write-up for
Footnote or Endnote, if necessary. each strategy stating in
Any combination thereof
paragraph form:
 Examples:
Product Strategy: Develop New Products for the new
segment at premium price
Examples of
The Fitness Sandwiches Line

Meat Column
Fitness Sandwiches
Exhibit 10.1

Energy Enhance
Apart from the rising of the cosmopolitan
Fillings Grams/g fitness lifestyle of Filipinos nowadays which is seen
Calories/kcal
Beef rib roast 80 251.2
through the gyms and Pili fitness
Nuts centers blossoming
10 69.9 one after the other, there is also the fervent
efforts of food establishments
Sesame Seeds
Tomato
improving 10
20
their 64.2
menus and food selection. This is because
12.8
Filipino consumers areLettuce smart enough to 20 know that 8.6 being healthy does not only mean having a
Pickles * 20 15
healthy body, but it means having a healthy mind
1.1 as well. To achieve having a healthy mind is
Bread used: W hole wheat pita

Vinaigrette 10

feeling good about oneself,

Sweet Teriyaki *
TOTAL
it is also knowing10
150
what
20
407.8
food is healthy to eat.
.
Meat Column

Roasted beef ribs shredded with tomatoes, sprinkled with a

.
mixture of pili nuts and sesame seeds, garnished with lettuce
and dressed with luscious vinaigrette. Pickles and sweet teriyaki
We have also come up with a Table for each kind and for each choice to show how much
spread are optional addition.

calories, protein, etc. isFillings

in oneProtein
serving.
Boost All nutritional facts are in percentage form. This
Grams/g Calories/kcal
strategy can help support the increasing
Tuna Flakes 60 awareness 185.4 and concern of the consumers by letting
Shredded Chicken White Meat 60 103.8
them see the nutritionalLettuce facts of the food 30 they order.12.9 Oliver’s Super Sandwiches Philippines will
be regarded as a company Soy Mayo
Lime Sauce
that cares to20 20
promote93.3 10
a decrease in the obesity rate by having these
healthy sandwiches as TOTAL an option. Through 190 this,405.4
our consumers can be aware that Oliver’s Super
Sandwiches Philippines is promoting
Tuna flakes mixed good
with shredded chicken breasthealth and healthy living. This is also one way to
meat in soy
mayonnaise wrapped in lettuce and dressed with lime sauce.
help the others who are willing to convert themselves to being health-concerned consumers.
 Promotions Strategy: Broaden corporate tie-up arrangements

“Customer Loyalty Advantage Card”

It is a strength of Oliver’s Super Sandwiches Philippines Glorietta branch that it is located in

Glorietta mall and as mentioned, the largest percentage of our respondents prefer Makati as
a place to dine in. Oliver’s Super Sandwiches Philippines is currently offering a VIP card
which entitles the cardholder a 5% discount on their purchase. The company also has on-
going promotional campaigns on special occasions throughout the year. To note an external
factor, consumer expenditure is increasing due to deliveries and take-out services.
We came up with a strategy to continue and add to Oliver’s Super Sandwiches
Philippines’ current promotional campaigns. The customer loyalty advantage card is as
small as a calling card and is given free of charge. The card has ten circles where the cashier
stamps after the customer’s purchase. This card is to be presented by the customer to the
cashier upon ordering to get one stamp for each order of any sandwich. After ten stamps, the
customer is entitled to a free sandwich which can be redeemed on the next purchase or on
the next visit…

This strategy can help in increasing the sales of Oliver’s Super Sandwiches Philippines as it
can also promote newly-added items on the deli’s menu like fresh fruit and vegetable juices.
Having posters and flyers distributed in corporate offices increases the awareness and
familiarity of Oliver’s Super Sandwiches Philippines.
 Promotions Strategy: Conduct public relations campaign in fitness and
health magazines

Oliver’s Super Sandwiches Philippines having clear tie-ups with reputable heath
establishments is a big advantage for the deli to be featured in health magazines and health
brochures. Regular gym-goers and fitness fans are most likely subscribing or purchasing
health print materials which is a great chance for Oliver’s Super Sandwiches Philippines to
be seen in such materials.

The “Sandwich Making Contest and “Sandwich for a Cause” to be featured in health
magazines is one way of giving consumers more information and awareness that the deli is
promoting great tasting healthy sandwiches. This is also one good way to show on-going
promotional campaigns and new product lines of sandwiches and beverages that Oliver’s
Super Sandwiches Philippines is offering. Oliver’s Super Sandwiches Philippines
management should develop effective PR write-up stressing the eating delicious but healthy
sandwiches concept. After having contacted and after meeting with specific people like the
writers of special interest articles and editors-in-chief of selected and targeted health
magazine, a write-up and some pictures are then sent to the health magazines with gift
certificates and other possible freebies in exchange for their services.
END
GOOD LUCK MARKETERS!