Corporates used to do SWOT analysis, i.e strengths, weaknesses, opportunities and threats analysis to formulate business strategy. These days an extension of SWOT called TOWS analysis has appeared. It matches up strengths with opportunities, and threats with weaknesses. In SWOT, these four are identified with singular perspective. In TOWS, the relationships between these are identified. In TOWS chart, the internal strengths and weaknesses are intersected with the external opportunities and threats.

Strength and opportunities (SO) enable us to assess, how the strengths can be utilised to avail of the opportunities.

Strength and threats (ST) enable as to use the strengths to avoid the threats.

Weakness and opportunities (WO) enable us to utilize opportunities to overcome the weaknesses.

Weaknesses and threats (WT) enable us to minimise weaknesses and avoid threats.