SOAR analysis is one of the most popular tools for strategic planning among big corporations and small businesses. The acronym SOAR stands for four essential elements of business strategy: strengths, opportunities, aspirations, and results.
SOAR model differs from strategic techniques like SWOT analysis by using appreciative inquiry to focus on the business’s strengths instead of weaknesses or potential threats.
🔤 What Is a SOAR Analysis
SOAR analysis aims to create a business strategy by focusing on organizational strengths and taking advantage of an organization’s opportunities. This method helps to align the business’s strengths and opportunities with the desired outcomes.
SOAR analysis has numerous benefits, for example:
- It’s easy to use during a brainstorming session with a team.
- It brings different departments together and attracts stakeholders.
- It provides direction to a business by mapping strengths with aspirations.
Moreover, analytics often refer to SOAR as a positive approach to strategic planning because it allows an organization to build its future through collaboration, mutual understanding, and a commitment to goals.
🧩 SOAR Model Components
Let us discuss each element of the SOAR matrix in detail and provide some examples.
Strengths
The first component aims to determine the organizational strengths that can help a business to seize opportunities for innovation and growth. Usually, it includes the business’s critical assets, resources, capabilities, and accomplishments.
There are also less common business strengths that can significantly improve a company’s performance. Examples of those are strong company culture, high adaptability to the market, and professional customer service.
Opportunities
The second section of SOAR analysis identifies market opportunities that a company can pursue to increase profitability, market share, or competitive advantage. In most cases, they refer to favorable external factors, for example, the growth of the target market or potential new sources of financing.
Nonetheless, many opportunities emerge from the company’s strengths, which is why these two elements are deeply connected.
Aspirations
This element focuses on what a company wants to become and achieve in the long run. Aspirations are crucial for maintaining organizational strengths, providing the team with direction, and challenging the current situation.
Some examples of business aspirations include increasing the company’s total income, reducing production expenses, raising brand awareness, or selecting a charity to sponsor.
Results
The final section aims to show how a business will know that it has achieved its aspirations and how it will track progress. A company should focus on 3-5 measures critical to business success. The key performance indicators include profit margin, revenue growth, and customer satisfaction. However, these measures may vary based on the company’s goals.
📝 SOAR Model Examples
Whether you want to build a SOAR model for an international or local company, here’s an analysis template you can use. Consider these questions for identifying business strengths, opportunities, aspirations, and results.
By answering these questions and filling in the table, you will see the big picture of what your selected company does well and how it can improve its operations.