Dansk
A TOWS analysis is a superstructure on the SWOT analysis. Based on the result of the SWOT analysis, the change needs that the company faces are identified by linking different combinations between the inferred strengths, weaknesses, opportunities and threats.
The TOWS analysis thus acts as a link between the current strategic situation and the future goal of the company, identifying the needs for change in this analysis. This is done by active use of a priority SWOT overview. Never use a long SWOT overview where no active opt-outs have been made.
In order to facilitate the understanding framework, we call the needs for change traffic lights and traffic lights thus create the basis for the development the company is facing.
A green traffic light occurs in the combination between an external option and an internal strength. There is therefore an external possibility in the market that, combined with a strength in the company, derives a business opportunity to be exploited, also called a green traffic light. So the ball is right in front of goal and just needs to be kicked in. It can also be said that an assessment and conclusion has been made of what happens when this combination of internal forces and external options occurs.
A red traffic light occurs in the combination between an external threat and an internal vulnerability. So there is an external threat in the market that, combined with a weakness in the company, infers a business challenge (burning platform) that needs to be handled, also called a red traffic light. The cork is pulled out of the bathtub and if it is not put in we run out of water. So there is an urgent challenge that needs to be solved immediately.
And yellow traffic lights occur in the last two combinations. There is therefore an internal force combined with an external threat or an internal weakness combined with an external one, which in both cases expresses a latent need for change.
A TOWS analysis should not only be prepared on the basis of a random SWOT overview. It must be prepared after you have carried out an external and internal analysis of your company and, together with your other strategy material, must be translated into concrete actions. An easy and simple approach is to use MakeMyStrategy™ as structures and summarize all your work into one comprehensive and coordinated action plan.
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Elizabeth Bagger