SOAR Analysis: Explanation, How to Perform, vs SWOT
SOAR analysis is a tactical forethought structure with an approach that focuses on power and seeks to understand the whole process by including the voice of stakeholders. It helps the organization to create and implement its own strategy & increases strength for further opportunities. It can be used as a part of a team. The SOAR acronym means strength, opportunities, aspiration, and result. SOAR helps the business to take decisions according to the current situation. SOAR discussions examine whether management is doing the right job or not. By using the SOAR analysis, the business can forecast how the organization will operate and what will be the future situation. According to Stavros and Hinrichs SOAR is, “a positive approach to strategic thinking and planning that allows an organization to construct its future through collaboration, shared understanding and a commitment to action.” That means SOAR allows management to create a future through collaboration, mutual understanding, and implementation.
Various factors of SOAR analysis:
- Strengths in SOAR analysis
The strength analysis means the main factors of the organization and the value of the product depends on such main factors. Every organization should focus on and analyze its product’s positive impressions that influence their consumers to buy their products.
For e.g. The Starbuck’s main strength is branding whereas the interior, the number of employees, and goodwill of the products are the other strength of Starbucks.
- Opportunities in SOAR analysis
The opportunities analysis means to understand the further opportunities that can be beneficial for the organization. By doing this analysis the organization can explore various opportunities and can take actions according to it.
For e.g. The organization can launch new products with new features and benefits. As consumers always expect something new from the business.
- Aspiration in SOAR analysis
Vision and mission play a vital role in the aspiration analysis. It helps the organization to know what they want to achieve. The vision is long term while the mission is for the short term and so changeable.
For e.g. Cinthol soap previously can be used by only males and so focused on male consumers but later on, it became uni-sexual and it’s now available for both males and females.
- Results in SOAR analysis
This analysis helps the organization to look that the works is done properly and are specific, measurable as well as time-related. The results encourage the organization for further productions.
For e.g. Apple company first introduced mobile phones and further launched various Apple products like iPad, laptops by analyzing the results of Apple products.
1. Achieve goals:
SOAR analysis investigates the future and recent circumstances of the organization and helps to aim and achieve the goal.
SOAR analysis works as a mirror for the organization that helps them to look upon their ways of action and to improve them if necessary.
3. Leadership development:
SOAR model can help to develop leadership not only for companies but for an individual also.
4. Further looking and positive:
It helps to understand and forecast the future and also helps in taking positive actions according to it and can helps to explore the market further.
It helps the organization to implement its strategy and ideas.
Aspirations are unessential because you have already done it before in the organization and you are just one step towards the vision.
SOAR does not help for in-depth analyzing and it can lead the organization towards the wrong thing.
How to perform a SOAR analysis?
1. Determine objectives:
The first step is to set the goal, when you want to achieve, at what time-limit. The objective should be specific and realistic.
2. Create a team:
The second step is to create a team from all the levels of management.
Further, Brainstorm and complete your first draft as a team.
Then, Prune means to remove all the unnecessary things and should focus on the important things. For this, the organization should know the attractive and important things and ideas.
Once the SOAR analysis is done the organization will distribute the task and will execute the ideas and strategies.
The organization will monitor the progress regularly and if you will not do you will not be able to understand whether you are progressing or not.
Difference between SWOT and SOAR:
SWOT analysis considers both external and internal factors of the environment and would not help the organization to proceed further whereas SOAR helps the organization to understand the actions they need to take in the future. In SWOT and SOAR, there is only the difference of two words i.e. aspirations and results in SOAR which means it does not focus on the negative things while SWOT also focuses on the negative things i.e. weakness and threats.
Also Read: SWOT Analysis: Explanation, How to Perform, Example
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