Strategic Planning Tools Amazon use of SWOT TOWS
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Strategic Planning Tools Amazon use of SWOT TOWS
Amazon conducted an internal appraisal of itself, and an external appraisal of threats and opportunities.
To review Amazon’s methodology, visit:
From both of these exercises, Amazon summarized its strengths, weaknesses, opportunities and threats in the matrix below.
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TOWS Matrix
Amazon used the TOWS matrix to help it look at options, and to ultimately identify high leverage strategies. Strengths, weaknesses, opportunities and threats are looked at in a more systematic way than in a typical SWOT analysis. A TOWS analysis helps one to focus on: leveraging strengths, avoiding weaknesses, make the most of opportunities, and manage threats.
![](https://biz169.inmotionhosting.com/~creat406/strategy-keys.com/wp-content/uploads/2017/02/what-is-tows-matrix.png)
Source: Deepan's Private Network
For each of the inner four portions of the table (e.g. SO, ST, WO, WT), Amazon asked the following questions:
- Strengths and Opportunities (SO): How can we best employ our strengths to take advantage of the opportunities in front of us?
- Strengths and Threats (ST): How can we use our strengths to avoid threats?
- Weaknesses and Opportunities (WO): How can we use opportunities to overcome the weaknesses?
- Weaknesses and Threats (WT) – How can we minimize our weaknesses and manage the threats?
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Strategic Planning Tools Amazon use of SWOT TOWS
Highlights by David Willden