You can take the TOWS Matrix to be an extension of the SWOT matrix. A SWOT matrix helps you identify the strengths, weaknesses, opportunities and the threats before your business. However, a TOWS matrix helps with strategy formulation on the basis of the identified factors. It is an analytical tool to help you build over your strengths and make the best use of the available opportunities while minimizing the effect of threats. For a better and deeper understanding, please go through this example TOWS matrix of Dominos.

In 2016, Dominos saw heavy international expansion. With great tasting pizza, Dominos is also known for great customer service. The brand has relied on digital innovation for better serving its customers. It’s the second largest pizza chain in the world with its 13800 stores. At an average it sells 2 million pizzas a day. Here is a brief SWOT analysis before we proceed to the TOWS Matrix.


  • Strong brand equity
  • Strong and proven business model
  • Investment in technological innovation
  • Product innovation
  • Internal dough manufacturing and supply chain system

Weaknesses :

Low number of stores

Franchisee related issues

Operational difficulties


Market Expansion

Low calorie menu

Changing demographic and economic trends


Intense competition in QSR category

Regulatory pressures

Costs of operation and raw material

Lack of long term contracts with key suppliers

Health conscious trends

The TOWS Matrix that follows will discuss the strategic options for Dominos that it can use to make the best use of its strengths, reduce its weaknesses and to minimize the challenges arising out of its threats. It also discusses how Starbucks can capitalize on the available opportunities using its major strengths highlighted in the SWOT Analysis.


Strengths (S) Weaknesses (W)
Opportunities (O) SO – Using strengths to capitalize on available opportunities WO – Overcome weaknesses to capitalize on opportunities
Threats (T) ST – Use strengths to avoid threats WT- Reduce weaknesses to avoid threats

SO –

  • Use the strong brand equity it has in the global market to partner Chinese brands and extend its market presence there. China is a lucrative market but still Dominos has not been able to penetrate it deeply.
  • Use its technological capabilities to better serve the millennials and to grow its popularity among middle class customers.
  • Use its Internal dough manufacturing and supply chain system and other key capabilities to make more of low calorie items which are a favorite of the millennial generation known for its health consciousness.

WO –

  • Increase the number of stores in the less penetrated markets using different store models.
  • Use its internal supply chain capabilities to sort out any operational issues faced by the franchisees.
  • Adopt a code of conduct for the Franchisees to follow.

ST –

  • Focus on marketing and advertising its products and brand to reduce competitive pressure from other QSR brands.
  • Maintain focus on compliance to keep regulatory threats minimized.
  • Reduce costs of operation and raw material through supply chain management.
  • Produce and market a range of low calorie products to make the best of health conscious trends.

WT –

  • Increasing the number of stores internationally can reduce some of the competitive pressure.
  • Focus on managing long term relationships with its key suppliers.