Apple TOWS analysis
A TOWS Matrix can also be understood as an extension of the SWOT matrix. A SWOT matrix helps us identify the strengths, weaknesses, opportunities and threats for a business. However, a TOWS matrix helps with strategy formulation on the basis of the identified factors. It is an analytical tool that helps build over your strengths and make the best use of available opportunities while also minimizing the threats. For a better and deeper understanding go through this example TOWS matrix of Apple.
Before we move on to the TOWS analysis let’s first have a look at a brief SWOT analysis. The TOWS analysis is based on the SWOT. The maker of Iphone, IPad and Mac is known for innovation and premium quality products. It has a strong brand image and is a market leader across several product categories. It means high profit margins on its products which are highly popular. The premium quality of its products is the reason that Apple enjoys high customer loyalty. However, the falling demand of Pcs and laptops has led to a decline in the markets share of Apple.
Strengths:
- Market leader in a range of products and services
- Highly strong brand image
- Financial strength
- Innovative and highly sophisticated supply chain
- High profit margins
- Large and loyal customer base
Weaknesses:
- Products not priced competitively
- Narrow product range compared to the rivals
- Products and services incompatible with the other brands
Opportunities:
- Increasing demand for the mobile gadgets and technology
- Product diversification
- Make compatible products
Threats:
- Increased competition
- Rising costs of manufacturing
- Jobs’ demise a major loss
Apple TOWS MATRIX
| Strengths (S) | Weaknesses (W) | ||
| Opportunities (O) | SO – Using strengths to capitalize on available opportunities | WO – Overcome weaknesses to capitalize on opportunities | |
| Threats (T) | ST – Use strengths to avoid threats | WT- Reduce weaknesses to avoid threats | |
SO –
- Increase the focus on mobile devices, their manufacturing and marketing to profit from their increasing demand. Focus on portability of laptops; release models that provide better portability like detachables.
- Use its financial clout and the strength of brand image to diversify into new product areas and generate sales and profits. This will also help it benefit from its existing customer base and customer loyalty.
- Partner with other brands to produce compatible products and develop mutually beneficial relationships. This will help hack into other brands’ customer base.
WO:
- Release a range of products priced competitively to attract middle class customers.
- Create a larger product range and enter into new product areas and serve new customer segments.
ST:
- Develop a larger range of products to grow its customer base and reduce the competitive pressure.
- Control costs of manufacturing by focusing on supplier relationships and establishing manufacturing plants in nations with lower labor costs.
- Focus on cultural change to retain the competitive advantage created by Jobs.
WT:
- Release a range of competitively priced products to attract middle class customers and reduce the pressure from competitors.
- Broaden the product range and exploit the existing supply chain capabilities to reduce manufacturing costs.