INTRODUCTION

The TOWS (threats, opportunities,

weaknesses, strengths) matrix is a
two-cell by two-cell matrix that assists
companies in determining strategic
alternatives by examining external
opportunities and threats and how
they compare to a companys existing
strengths and weaknesses

TOWS MATRIX

APPLICATION OF TOWS
MATRIX TO VOLKS WAGON

This is a Germany based company in to

manufacturing of automobile.
In 1980s company wanted to enter in to
US market
Case discusses TOWS analysis done for
them.

Tows
Analysi
s

IT-Strong R & D and

Engineering
-Strong Sales and
Service Network
- Efficient Prod /
Automation
Capabilities

IW- Heavy Reliance on

One Product
- Rising Costs in
Germany
- No Experience With
U.S. Labor
Unions if Building Plant
in the U.S.

EO - Growing Affluent
Market Demands
More Luxurious Cars
with Many
Options
- Attractive Offers to
Build an
Assembly Plant in U.S.
- Chrysler and American
Motors Need
Small Engines

SO - Develop and
Produce Multiproduct
Line with Many Options,
in Different
Price Classes ( like
desser,
Audi Line)
- Build Assembly Plant
Using R & D,
Engineering.
- Build Engines for
Chrysler and AMC

WO - Develop
Compatible Models for
Different Price Levels
(Ranging from Rabbit to
Audi )
- To Cope with Rising
Costs in Germany, Build
Plant in U.S., Hiring
U.S. Managers with
Experience in
Dealing with U.S. Labor
Unions

ET - Exchange Rate:
Devaluation of Dollar in
Relation to
Deutshe Mark (DM)
- Competition from
Japanese and
U.S. Automakers

ST - Reduce Effect of
Exchange Rate by
Building a Plant in the
U.S.
- Meet Competition with
Advanced
Design Technology
- Improve Fuel

WT - Overcome
Weaknesses by Making
Them Strengths (Move
Toward OS
Strategy)
- Reduce Threat of
Competition by
Developing Flexible

CONCLUSION

There are different ways of analyzing

the situation.
One is to begin with the identification of
important problems.
A second approach is to start with
determining the purpose and objectives
ofthe firm.
A third way is to focus on opportunities.

REFERENCES

Volkswagen.com
http://www.mindtools.com/pages/article/newSTR
_89.htm
http://thebuzzfactoree.com/making-a-tows-matrixits-a-swot-analysis-on-speed/