TOWS Matrix Analysis: A Strategic Framework to the Sustainability of Farmer Producer Companies (FPCs)

Abstract

In present scenario the sustainability and efficient management of Farmer Producer Companies (FPCs) are the biggest challenge to be answered for the promoting agencies. For that one has to frame strategic planning to pave a way forward for working and decisionsof FPCs. TOWS analysis includes creating a list of threats, opportunistic, weaknesses and strengths. It gives clues for examining a company and helps it to convert the challenges into opportunities and there by minimize threats by exploiting strengths and overcoming weaknesses. The matrix reveals about external threats in the form of competition from private companies, absence of risk mitigation procedure, policy changes, influential interference etc. FPCs are fortunate to have opportunities as credit support, training, future market, government schemes, value addition, retailing supporting institutions etc. The low level of participation, poor infrastructure needed for value addition and processing, lack of professional expertise have been weaknesses need to be overcome by harnessing the opportunities. The “we” feeling among the members and economies of scale are the biggest strength of FPCs. Strategies in the form of vertical integration, quality improvement, marketing in collectivism, developing infrastructure facilities, training for professional expertise, availing new technologies, competing in retail market with benefit of direct selling could be of great significance to them. The TOWS analysis of FPCs individually reveals that the factors vary with change in region and produce. Therefore, the strategies need to be developed identically for every FPC. There is wider scope for direct retailing and quality product with brand names. The FPCs not only provide monetary benefits to the member, but also enhance their confidence in farming