What is the CATWOE Analysis?

The CATWOE Analysis is a Tool that helps professionals Make Decisions and Define Strategies by analyzing the big picture of the Business.

 

To do this, it proposes to analyze 6 Factors that are of great importance in any Business.

 

Its name is an acronym for the 6 Factors studied:

  • Customers.
  • Actors.
  • Transformation.
  • World View.
  • Owner.
  • Environment.

Six Factors of the CATWOE Analysis

1. Customers: The average Client profile.

  • Their interests, preferences, budget, age, sex, brand-loyalty, etc.

 

2. Actors: Main People involved in the Company or Project.

  • The CEO, Sales team, Promoters, Managers, etc.

 

3. Transformation: What Processes take place in the Company.

  • What the company does: Manufacturing process, Information process, etc.

 

4. World View: How the Company fits into the World.

  • The Role played by the company in the World, the Impact it causes, etc.

 

5. Owner: What characterizes the Ownership of the Company.

  • Who are the biggest owners? Do they agree? Is there any Problem? etc.

 

6. Environmental: Everything related to Environmental issues.

  • Impact caused by the Company, Policies, Opportunities, Threats, etc.

CATWOE Analysis Template

 

The best way to understand the CATWOE Analysis and How you can use it is by sharing some examples with you:

CATWOE Analysis examples

Now, we’ll analyze 4 famous companies using the CATWOE Analysis.

We will try to discover the main pillars of their present and future strategies.

 

Let’s see what conclusions we can get:

Coca Cola - CATWOE Analysis example

 

Let’s use the CATWOE analysis to analyze what Coca-Cola should take into account before making important Strategic decisions.

 

Customers

Coca Cola targets everybody. Literally everybody.

  • People who drink Rum (cheap Rum) often mix it with Coke.
  • Children love Coke at Birthday Parties.
  • At Cinemas, everybody drinks Coke.
  • etc.

 

Actors

  • The Marketing Director is probably the most important person in the Company.
    • Coca Cola’s success is based on how people perceive the Brand. It is not its taste.

 

Transformation

  • Water + Sugar + Flavorings + The best Marketing Strategy in history = Coca Cola.
  • Coca Cola has also transformed the way sugar-based beverages are perceived.
    • It is not something only for children but also for adults.

 

World View

  • Coca Cola’s motto says it all: “Open Happiness”.
  • Coca Cola’s World View is optimistic and integrative.
    • Of course, if your target market is the entire world, it must be that way.

 

Owner

  • Berkshire Hathaway, the super-successful Conglomerate, controlled and owned (partially) by Warren Buffet, owns an important amount of shares of Coca Cola.
    • To be precise, Berkshire owns the 9.3% of Coca Cola.
      • It is the Top owner.

 

Environmental

  • The world is moving towards an economy that is much more respectful of the Environment.
  • Coca Cola uses Recycled materials for their cans (Aluminum is generally recycled) and bottles (idem for glass bottles).
    • The usage of water should be optimized as well as all industrial processes.

Hyperloop - CATWOE Analysis example

 

Let’s use the CATWOE analysis to analyze what the Hyperloop Project should take into account before making important Strategic decisions.

 

Customers

  • We still don’t know the price of the tickets.
    • But we assume that it is a Project aimed at upper-middle class clients.
      • High-Speed trains are relatively expensive.

 

Actors

  • Elon Musk.
    • He is the Guru who spread this idea all over the world.
  • Also, Virgin (the company) has a major project related to Hyperloop.

 

Transformation

  • A Long Vacuum chamber + Single wagon with a turbine + Seats = Hyperloop.
  • It aims to transform how we move.
    • And what trains are.

 

World View

  • This Project sees a World where everybody could move across countries and cities as we do today with the Subway.
    • Paris – Milan in half an hour.

 

Owner

  • There are different Hyperloop Projects around the world.
    • It would depend on each project.

 

Environmental

  • Hyperloop could be good for the Environment, as it would greatly reduce the amount of greenhouse gases expelled by airplanes.
    • If there were Environmental economic incentives, this could be interesting.

Tesla - CATWOE Analysis example

 

Let’s use the CATWOE analysis to analyze what Tesla should take into account before making important Strategic decisions.

 

Customers

  • Although Tesla targets everyone, its prices can only be afforded by upper-middle class Customers.
    • However, some of its most devoted fans are people who could never afford to buy one of its cars.

 

Actors

  • Again, Elon Musk.
    • Tesla would be nothing without him.
  • Why? Because he has an “Aura” that people worship.
    • He represents change and how impossible things can be achieved.
      • Does he deserve this worship? Only time will tell.

 

Transformation

  • Minimal design + Good Technology + Batteries that last an acceptable amount of time = Tesla.
  • Tesla has changed the concept of the traditional automobile.
    • How they are built, their Components, etc.
      • Will this change last? Again, only time will tell.

 

World View

  • Tesla sees a world with:
    • Autonomous cars.
    • Electric “Gas Stations”.
    • Fuel-free vehicles.

 

Owner

  • Elon Musk is the biggest stakeholder by far.
    • He owns 20% of the company.
  • This stakeholder structure is important: Musk has a lot of power.

 

Environmental

  • Electric cars don’t exhaust greenhouse gases.
    • They also contamine, but in other ways (batteries and components).
  • Also, if the power that charges the car comes from a Fossil-fuel station…
    • That’s why Tesla’s “Electric Gas Stations” have (or will have) solar panels for power.

TikTok - CATWOE Analysis example

 

Let’s use the CATWOE analysis to analyze what TikTok should take into account before making important Strategic decisions.

 

Customers

  • Although TikTok is now used by all kinds of people, its main Users are teenagers, by far.

 

Actors

  • Zhang Yiming.
    • He is the creator of TikTok.
  • Now there are lots of companies interested in buying TikTok.
    • Over time, we may see new players involved.

 

Transformation

TikTok Transforms the way people who don’t know each other communicate:

  • By sharing short videos that are generally comical.

 

World View

  • TikTok sees a interconnected world where people can communicate with each other not necessarily speaking.
    • Dancing, singing… are international ways of communicating.
      • And don’t require people to speak the same language.

 

Owner

  • ByteDance: A Chinese company.
    • But, in the near future, we may see a new owner.
  • Important: It is owned by a single entity.

 

Environmental

  • TikTok can play an interesting role in spreading an Environmentally friendly message.
    • Activists, NGOs… Can reach young people using TikTok.

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