SWOT & TOWS - An Introduction

Summary

This video explains the strategic use of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis and TOWS (a strategy-building tool) in marketing. It covers how businesses conduct internal and external research, organizing findings into a SWOT framework to assess their situation. The French Café example is used to illustrate how a SWOT analysis can guide strategic decisions. TOWS is introduced as a method to develop actionable strategies based on SWOT insights. The video also highlights the value of these tools in making informed decisions to address challenges and leverage opportunities.

Takeaways

• 🔍 Strategic planning involves research and analysis to gather relevant data for decision-making.
• 📊 Marketers summarize research findings using tools like SWOT (Strengths, Weaknesses, Opportunities, and Threats) and TOWS for strategic decision-making.
• 🔄 SWOT analysis helps distinguish between internal factors (strengths and weaknesses) and external factors (opportunities and threats).
• 🏗 SWOT organizes data to provide an overview of what is working well and what challenges exist in the business.
• 💡 TOWS analysis helps generate strategic options by matching strengths with opportunities, and weaknesses with threats.
• 📉 In the example of the French café, decreasing customer visits and sales led to extensive research to identify problems.
• 🧑‍🍳 Internal analysis of the café revealed strengths like financial stability and experienced staff, but also weaknesses such as high staff turnover and a rundown building.
• 🌍 External analysis showed opportunities such as increased food tourism and disposable income, along with threats like growing competition and health-conscious consumers.
• 📈 TOWS analysis suggested strategies like targeting food tourists with a marketing campaign and investing in staff well-being to improve customer experience.
• 🛠️ The SWOT and TOWS tools are essential for summarizing research findings and generating actionable strategies for business improvement.

Q & A

When are SWOT and TOWS analysis conducted in the strategic planning process?

SWOT and TOWS analysis are conducted after conducting both secondary and primary research, which includes internal and external analysis. They are used to summarize and conclude the research findings before making strategic decisions.

What is the purpose of SWOT analysis?

The purpose of SWOT analysis is to organize and summarize conducted research and analysis by identifying the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

What is the purpose of TOWS analysis?

The purpose of TOWS analysis is to generate strategic options based on the findings from the SWOT analysis. It helps in identifying possible actions that can be taken based on the internal and external factors.

What types of research does the French cafe conduct?

The French cafe conducts both qualitative and quantitative research, including speaking to customers and suppliers, analyzing financial accounts and online presence, and investigating competitors.

What are some of the strengths identified for the French cafe?

Some of the strengths identified for the French cafe include financial stability and a highly experienced, French confectioner, which adds authenticity to the cafe.

What are some of the weaknesses identified for the French cafe?

Some of the weaknesses identified for the French cafe include a high turnover of staff, which leads to excessive hiring and training time, and a rundown building.

What opportunities does the SWOT analysis reveal for the French cafe?

The SWOT analysis reveals opportunities such as food tourism, where an increased number of tourists seek high-quality food experiences, and a general increase in disposable income.

What threats does the SWOT analysis reveal for the French cafe?

The SWOT analysis reveals threats such as an increased focus on healthy living, which could negatively impact the cafe's high-fat and sugar content products, and increased local competition with new restaurants and cafes opening.

How does the French cafe use its strengths and opportunities to create a strategic option?

The French cafe can use its strengths and opportunities by creating an offering and campaign targeted directly at food tourists, capitalizing on the trend with its high-skilled and experienced confectioner.

How does the French cafe address its weaknesses and opportunities?

The French cafe could reorganize and invest in staff wellbeing to create a more consistent and positive cafe experience, taking advantage of the increase in disposable income.

What strategic options can the French cafe consider to face its weaknesses and threats?

The French cafe could carry out much-needed repairs on the building or consider moving location to minimize the weakness of its rundown appearance and face the increase in competition.