The Importance Of Preforming TOWS Analysis To Grow Your Brand

Are you a business owner or considering opening a business?

Whether it's a physical or digital product or service, you need to familiarize yourself with templates designed to increase conversions, sales, and engagement.

One business tool that can be very handy for you, especially during the first phase of planning your business is the TOWS Analysis.

Similar to the traditional SWOT analysis, the TOWS analysis is an updated improved template that digs deep into the how and why by adding actions to help solve business problems.

It has been implemented by successful companies to identify crucial components in their businesses.

In this article, I am going to focus on the TOWS Analysis, how to use it, the advantages and limitations as well as how it can help your business grow.

How To Use The TOWS Analysis?

You can use this 3 step process to complete the TOWS Analysis: Identify-Assess-Combine.

1- Identify the Threats and Opportunities (TO) in your brand or product.

This can be done by looking at your industry, market, and customers.

What are the major trends affecting your business?

What threats does your industry face?

What opportunities exist for your company?

2. Assess the Strengths (S) and Weaknesses (W) of your company.

What are your company's strengths?

What are your company's weaknesses?

3- Combine it all together and create a strategy for how you will take advantage of the opportunities and address the threats and weaknesses.

Benefits Of TOWS Analysis

TOWS analysis is a tool that can help businesses determine their strengths, weaknesses, opportunities, and threats. It's used when creating a business plan to help your brand stay ahead of the competition.

There are a number of benefits to using TOWS analysis:

• It assists companies to determine their strengths and weaknesses in the marketplace. This is a good place to start when creating new products or services, as it can help you avoid developing something that's already been done by another company and resulting in a duplicate product or service.
• The process helps businesses identify opportunities for growth - which could be related to ideas like improving customer satisfaction levels or offering a new product or service.
• Analyzes how competitors are performing. This can give you an idea of what areas they're strong in, and where their weak points lie - which could help your company stand out and excel.

Limitations Of TOWS Analysis

The main limitation of TOWS analysis is that it can be difficult to predict the future.

However, by looking at all aspects of your business, you can make better decisions for your company's future.

1. TOWS analysis can be time-consuming if not done correctly
2. It can also be difficult to accurately identify the threats and opportunities without conducting a thorough investigation
3. The results of a TOWS analysis should not be taken at face value, but rather used as a starting point for further research and discussion
4. There is no one right way to conduct a TOWS analysis, as long as it is thorough and well thought out
5. It can be difficult to rank the importance of each section in order for them to choose which ones they should tackle first or at all
6. TOWS Analysis may not always result in actionable steps because sometimes there are no solutions that will address every threat.

Above image is created by the author.

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About The Author

Noor is a second-year business student at Tredu. She is also studying for Diploma in International Smart Industry at TAMK. She is passionate about marketing and content creation. She recently launched her YouTube channel specializing in holistic healing.