TOWS/SWOT Matrix of TOYOTA

SWOT Matrix for Toyota is provided in the above figure. SWOT Matrix contains nine cells in which four are key factor cells, four strategy cells and one blank cell. First of all, the four key factor cells are completed which are labeled as: S, W, O, and T then the four strategy cells will be constructed which are labeled as: SO, WO, ST, and WT.

It is important to note that not all the strategies developed in the SWOT Matrix will be selected for implementation. The matrix only points out the possible strategies which can be implemented. It does not help in determining the best strategies for implementation. While constructing SWOT matrix, one should include S1, O2 type notation after each strategy because notation reveals the rationale for each alternative strategy.

Limitations of SWOT/TOWS Matrix

1. SWOT matrix does not reveal the steps which need to be followed in order to achieve competitive advantage. The matrix does not show how to implement the strategies successfully.
2. Organizations always face changing competitive environment. Due to continuous improvements it becomes difficult for the organizations to reveal the dynamics of a competitive environment in a single matrix.
3. TWOS Matrix does not show interrelationships among the key internal and external factors. Organizations may overemphasize a single internal or external factor in formulating strategies. Whereas, interrelationships among the factors also impact the strategies.