Domino's TOWS analysis : Turning Threats into Opportunities & Weaknesses into Strenghts

 

This blog covers:

1. TOWS Matrix & steps to develop it

2. TOWS for a Fictional company manufacturing Electric Vehicles

3. TOWS for Domino's, a pizza delivery chain

 

1. TOWS Matrix & steps to develop it 

A TOWS analysis is a strategic planning tool that is used to help organizations identify and evaluate strategic options based on an assessment of their internal strengths and weaknesses, as well as the external opportunities and threats that they face. The name "TOWS" is derived from an acronym that stands for Threats, Opportunities, Weaknesses, and Strengths.

To conduct a TOWS analysis, the organization typically follows these steps:

Conduct a SWOT analysis: The first step is to identify the internal strengths and weaknesses of the organization, as well as the external opportunities and threats that it faces.

Identify strategic options: Based on the SWOT analysis, the organization should identify strategic options that can help it capitalize on its strengths, address its weaknesses, take advantage of opportunities, and mitigate threats.

Create TOWS matrix: The TOWS matrix is a tool that is used to organize the strategic options identified in step 2 into four categories: Strengths-Opportunities (SO), Weaknesses-Opportunities (WO), Strengths-Threats (ST), and Weaknesses-Threats (WT).

Evaluate and prioritize strategic options: The organization should evaluate the strategic options identified in each category of the TOWS matrix and prioritize those that are most likely to help it achieve its strategic objectives.

Develop an action plan: Once the strategic options have been prioritized, the organization should develop an action plan that outlines the specific steps that it will take to implement them.

A TOWS analysis can be a valuable tool for organizations that are looking to develop or refine their strategic plans. By identifying strategic options that are aligned with their strengths, weaknesses, opportunities, and threats, organizations can develop more effective strategies that are better suited to their unique circumstances.

2. TOWS for a Fictional company manufacturing Electric Vehicles

Let's look at TOWS matrix for a fictional company that produces electric vehicles:

Strengths  Innovative technology Strong brand image Experienced R&D team Cost-effective production processes	Weaknesses  Limited market penetration Lack of charging infrastructure Limited range of vehicles High prices
Opportunities Growing demand for Eco-friendly vehicles Increasing government support for electric vehicles Expansion into new markets Partnerships with charging infrastructure providers	Threats Intense competition from established automakers Fluctuating battery prices Regulatory changes that could impact demand for electric vehicles Economic downturns that could impact consumer spending

Based on this SWOT analysis, the TOWS matrix for the company could look something like this:

	Leverage Strengths	Address Weaknesses
Exploit	SO: Expand into new markets	WO: Increase range of vehicles
Minimize	ST: Strengthen brand image through marketing	WT: Develop a cost-effective charging infrastructure

In this TOWS matrix, the company could leverage its strengths by expanding into new markets and address its weakness of limited range by increasing the range of its vehicles. It could minimize the threats it faces by strengthening its brand image through marketing and developing a cost-effective charging infrastructure.

Based on this analysis, the company could develop an action plan that includes strategies such as investing in research and development to increase the range of its vehicles, partnering with charging infrastructure providers to develop a cost-effective charging network, and increasing its marketing efforts to strengthen its brand image.

By using a TOWS analysis, the company could develop more effective strategies that are better aligned with its unique strengths, weaknesses, opportunities, and threats.

3. TOWS for Domino's, a pizza delivery chain

Strengths Strong brand recognition and reputation Efficient delivery network and supply chain User-friendly online ordering platform Popular menu items and promotions	Weaknesses Perceived low quality of ingredients and pizza taste Limited menu options for those with dietary restrictions Dependence on pizza as a primary product High employee turnover and labor issues
Opportunities Expansion into international markets Partnerships with popular brands for limited-time promotions Increased demand for plant-based food options Innovation in food delivery technology	Threats Intense competition from other pizza chains Health and safety concerns surrounding pizza consumption Changes in consumer preferences for healthier food options Economic downturns impacting consumer spending

Based on this SWOT analysis, the TOWS matrix for Domino's could look something like this:

	Leverage Strengths	Address Weaknesses
Exploit	SO : Expand globally by leveraging delivery network and online ordering platform	WO: Increase menu options for customers with dietary restrictions
Minimize	ST: Partner with popular brands for limited-time promotions to increase market share	WT: Improve pizza taste and ingredients to address perceived low quality

In this TOWS matrix, Domino's could leverage its strengths by expanding into international markets and increasing menu options for customers with dietary restrictions. It could address its weaknesses by partnering with popular brands for limited-time promotions to increase market share and by improving the taste and quality of its pizza to address negative perceptions.

Based on this analysis, Domino's could develop an action plan that includes strategies such as partnering with plant-based food companies to offer more vegan and vegetarian options, investing in research and development to improve the taste and quality of its pizza, and expanding its delivery network into new international markets.

By using a TOWS analysis, Domino's could develop more effective strategies that are better aligned with its unique strengths, weaknesses, opportunities, and threats.