abhishreshthaa
Abhijeet S
TOWS Strategic Alternatives Matrix
The TOWS Matrix is a relatively simple tool for generating strategic options. By using it, you can look intelligently at how you can best take advantage of the opportunities open to you, at the same time that you minimize the impact of weaknesses and protect yourself against threats.
It basically consists of four theories-
• Strengths and Opportunities (SO) – How can you use your strengths to take advantage of the opportunities?
• Strengths and Threats (ST) – How can you take advantage of your strengths to avoid real and potential threats?
• Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are experiencing?
• Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?
The SO Strategy (Maxi-Maxi Strategy) For Shumaker:-
Strength
Easy availability of leather at low price as compared to most of the countries.(Since India is the largest producer of livestock.)
Financial support and other support from government is provided to a huge extent like
Export promotion council works as a guide for the company
Growing population. Anyone who can afford to by shoes does buy them.
Can increase production and exploit more international markets through aggressive expansion and market capture planning
Educated proprietor
Readily available technical know-how.
Opportunities in the Indian market – along with the export market Shumaker can also target the domestic market i.e. India since India in itself is the second largest consumer of shoes.
Shumaker can make use of its knowledge on shoe manufacturing business and start exploiting the Indian markets itself.
ST Strategy (Maxi-Mini Strategy):-
Threats
Goodwill for Indian products.
Quality recognition of Indian products.
Chinese cheap labour and excessive production capacity.
Making maximum utilization of this intangible asset and also de-positioning Chinese goods as of having low quality standards.
Standardizing quality and making the company ISO 9000 certified.
Higher technical know-how
Cheaper African leather
Again goodwill for India can be utilized. Moreover higher technical know-how needs be effectively utilized.
Exports to various countries rather then to only one single country
Depreciating dollar: the company is facing low profits from its business in U.S. as the dollar depreciates.
Reduce business in the U.S. concentrate more on European markets.
WO Strategy (Mini-Maxi Strategy):-
Weakness Opportunity Plan
Low production capacity. Lack of funds to increase the production facility.
Increase in population
Opportunities in the Indian market.
Production can be increased by availing for special loans for government for the same purpose.
Getting in partnership, or merger or acquisition of other local SSI’s could be an option.
No branding.
Since Shumaker in itself is not a brand it may think of producing under a recognized brand by making it the brads franchisee.
Cost of multiple tier sales and distribution since he has no direct buyers and sells through C&F agents
Exploiting new markets and professional relationships
May enter into direct selling of product to supplier chain like Westside, who have their outlets all over the country.
No specific marketing strategy.
Wt Strategy (Mini-Mini Strategy):-
Weakness Threats Plan
INFLATION in India - The cost of the leather has gone up by 20% whereas the cost of the adhesives has increased by 15% Importing raw materials from china and Africa might be an option
Depreciating dollar: the company is facing low profits from its business in U.S. as the dollar depreciates.
Reduce business in the U.S. concentrate more on European markets.
No specific marketing strategy.
Aggressive marketing through internet is always an option.
The Chinese government provides much more incentives as compared to India.
Push for the government to make more benefits available.
The TOWS Matrix is a relatively simple tool for generating strategic options. By using it, you can look intelligently at how you can best take advantage of the opportunities open to you, at the same time that you minimize the impact of weaknesses and protect yourself against threats.
It basically consists of four theories-
• Strengths and Opportunities (SO) – How can you use your strengths to take advantage of the opportunities?
• Strengths and Threats (ST) – How can you take advantage of your strengths to avoid real and potential threats?
• Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are experiencing?
• Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?
The SO Strategy (Maxi-Maxi Strategy) For Shumaker:-
Strength
Easy availability of leather at low price as compared to most of the countries.(Since India is the largest producer of livestock.)
Financial support and other support from government is provided to a huge extent like
Export promotion council works as a guide for the company
Growing population. Anyone who can afford to by shoes does buy them.
Can increase production and exploit more international markets through aggressive expansion and market capture planning
Educated proprietor
Readily available technical know-how.
Opportunities in the Indian market – along with the export market Shumaker can also target the domestic market i.e. India since India in itself is the second largest consumer of shoes.
Shumaker can make use of its knowledge on shoe manufacturing business and start exploiting the Indian markets itself.
ST Strategy (Maxi-Mini Strategy):-
Threats
Goodwill for Indian products.
Quality recognition of Indian products.
Chinese cheap labour and excessive production capacity.
Making maximum utilization of this intangible asset and also de-positioning Chinese goods as of having low quality standards.
Standardizing quality and making the company ISO 9000 certified.
Higher technical know-how
Cheaper African leather
Again goodwill for India can be utilized. Moreover higher technical know-how needs be effectively utilized.
Exports to various countries rather then to only one single country
Depreciating dollar: the company is facing low profits from its business in U.S. as the dollar depreciates.
Reduce business in the U.S. concentrate more on European markets.
WO Strategy (Mini-Maxi Strategy):-
Weakness Opportunity Plan
Low production capacity. Lack of funds to increase the production facility.
Increase in population
Opportunities in the Indian market.
Production can be increased by availing for special loans for government for the same purpose.
Getting in partnership, or merger or acquisition of other local SSI’s could be an option.
No branding.
Since Shumaker in itself is not a brand it may think of producing under a recognized brand by making it the brads franchisee.
Cost of multiple tier sales and distribution since he has no direct buyers and sells through C&F agents
Exploiting new markets and professional relationships
May enter into direct selling of product to supplier chain like Westside, who have their outlets all over the country.
No specific marketing strategy.
Wt Strategy (Mini-Mini Strategy):-
Weakness Threats Plan
INFLATION in India - The cost of the leather has gone up by 20% whereas the cost of the adhesives has increased by 15% Importing raw materials from china and Africa might be an option
Depreciating dollar: the company is facing low profits from its business in U.S. as the dollar depreciates.
Reduce business in the U.S. concentrate more on European markets.
No specific marketing strategy.
Aggressive marketing through internet is always an option.
The Chinese government provides much more incentives as compared to India.
Push for the government to make more benefits available.