Based on your TOWS analysis, which of the four generic strategies from Porter, would you recommend to Lego? Explain your choice. Give at least two specific actions as examples of the chosen strategy.
Based on your TOWS analysis, which of the four generic strategies from Porter, would you
recommend to Lego? Explain your choice. Give at least two specific actions as examples of the
chosen strategy.
- Introduction:
TOWS analysis is almost like SWOT analysis, where a business identifies and understand the threat, opportunities, weakness and the strength of the market. the basic difference between a TOWS analysis and SWOT analysis is, in SWOT analysis the min focus remains in the external environment of the business where as in TOWS analysis is mainly used to analyze the internal environment of the business.
the basic objective of porter's strategic model is to understand and to determine the competitive strategies within a the market. there are four strategic theories are given by Porter to develop the competitive edge, which are:
- Cost leadership: In this type of competitive strategy, the business focuses more on a cost effective method of producing large scale products or providing services with cost effective production cost. the basic goal here is to become a cost effective producer in the market, so the business can take an aggressive pricing strategy by cutting through competitor's price.
- Differentiation: In this type of strategy, the business wants to be unique, either by their products or services or through their marketing and promotional strategies or through their pricing strategies. The goal here is to be unique and stand out amongst its competitors.
- Focus: in this type of competitive strategy the business focuses more their target market or try to create their own niche market to make make better connection with their target audience.
- Stuck in the middle: Here, a company get stuck while performing all of the previous strategies. companies which are stuck in the middle will less likely to gain competitive advantages from the market.
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