The EMOFF | SWOT matrix is a purely analytical tool that does not define a new orientation but is the support for strategic decisions. The TOWS model aims to find new directions or strategic decisions by combining opportunities and threats with strengths and weaknesses.
The EMOFF | SWOT Matrix Synthesis of the Strategic Analysis
The EMOFF | SWOT matrix constitutes the synthesis of the strategic analysis, it can be elaborated on different levels: a family of products, a company, a division, a group. This analysis is organized around three concentric circles:
- The PESTEL model allows the analysis of major trends at a “macro” level;
- The PORTER matrix is the model for analyzing the forces present in the business sector of the company.
The external analysis focuses on these first two, it highlights opportunities and threats, either at the level of the whole sector of activity or at the level of the company. The internal analysis focuses on the strengths and weaknesses of the company; it results from the overall diagnosis of the company. The EMOFF | SWOT matrix is in itself purely analytical; it does not contain any strategic choices but nevertheless constitutes the support for the elaboration of such orientations or decisions.
Below are the types of actions resulting from the operation of the EMOFF matrix?
- To develop from opportunities for example, to offer an offer responding to new customer needs to make investments in production capacity to support the growth of the market.
- Secure the company’s position against the appearance of threats, for example to extend its geographical reach to counter the appearance of new competitors
- Secure the company’s position by filling in weak points, for example expanding a narrow product range;
- Capitalize on its strengths to strengthen its position in the market, for example continue to invest in processes that enhance customer satisfaction.
The TOWS Model
The TOWS model (Threats, opportunities, weaknesses, threats) aims to define strategic directions or decisions by combining opportunities and threats, strengths and weaknesses.
- Offensive Strategy Opportunities | Strength
The automotive supplier Plastic Omnium specializing in plastics (strength) has developed a product offering and container services for waste management (opportunity). This orientation allowed the group to no longer rely exclusively on the automotive sector where margins are reduced.
- Defensive Strategy Threat | Force
A calf hull tanning business for the luxury industry is leveraging its strong (force) reputation to forge partnerships directly with calf producers to address the threat of skin shortage due to reduced consumption of calf meat. Regardless of the approach used to develop a strategic direction or decision, it should be shown to be relevant to the findings of the EMOFF matrix.