What is the SOAR Analysis?

The SOAR Analysis is a Method that helps companies Define and Track their Goals.

  • Analyzing the Competitiveness of the Company within its Market.

 

To do this, it proposes 4 Steps that First look at the Strengths of the Company and then Study what it can do with these Strengths.

 

Its name is an acronym for the 4 Steps proposed:

  • Strengths.
  • Opportunities.
  • Aspirations.
  • Results.

The 4 Categories of the SOAR Model

1. Strengths: Analyze what the Company Dominates. What it is Good at.

  • It can be a Small Strength that makes it more Unique, Faster, etc.

 

2. Opportunities: Study the Market and where these Strengths can be Valuable.

  • In what Market Niches, these Strengths can offer Advantages?

 

3. Aspirations: What the Company wants to Achieve and When.

  • What Role the Company wants to Play in the Market.

 

4. Results: Is the Company Achieving its Goals and Milestones?

  • Is the Company Efficient in achieving its Objectives?

SOAR Analysis Template

 

Now, we will share a first example, so that you understand the usefulness of this Method and How it is commonly used.

SOAR Analysis example

 

Imagine that you are Starting your own Business.

  • For example, you want to Start your own Academy.

 

What would you probably do?

Or… What should you do?

 

You should sit down and think about:

 

Strengths

You would meditate on:

  • What Branch of Knowledge you can Teach; Science, Law, etc.
  • What Subjects you are Good at; Math, Physics, Biology, etc.
  • In What Topics you are an expert; Differential Equations, Fluid Dynamics, etc.

 

Opportunities

Then, you would analyze:

  • What is Missing from the Market?
  • In which Topics you have less Competitors.
  • What Topics or Subjects are more in Demand?

 

Aspirations

You would have to think about:

  • Your Ambitions: Where you would want to be.
  • The Growth you can expect in the Future.
  • How much are you Willing to Sacrifice?

 

Results

You should Establish:

  • What your Goals are.
  • What Metrics you would track.
  • Deadlines and Milestones.

In this way you could easily track your Progress and Improve what is needed.

Now, before looking at more examples, we would like to clarify one thing:

  • The Difference between SOAR and SWOT Analysis.

 

In case you haven’t noticed, they are very similar.

Let’s analyze their differences:

Difference between SOAR and SWOT Analysis

 

The SWOT Analysis delves into the Threats and Weaknesses of the Company.

  • It explores what the Company is not good at, and what Risks it faces.

 

The SOAR Analysis Focuses on Strengths and Opportunities.

  • Obviating the weaknesses of the Company.

 

The SWOT Method is commonly used for Analyzing External Companies.

  • It is commonly used for analyzing Competitors and Market Players.

 

The SOAR Method is practically always used for Internal Analysis.

  • It is very difficult to Guess the Aspirations and Results of a Competitor.

 

* Check our “SWOT Analysis” Page in case you are Interested about it.

Let’s see more examples, so you understand this Tool better:

SOAR Analysis examples

We have chosen 3 Successful Companies and Developed a SOAR Analysis of each them.

  • As you can guess, we have had to imagine what these Companies Aspired to.
    • And How they Established and Evaluated their Results.

 

Although we have no internal data from them, we believe that this analysis can be helpful to Understand How the SOAR Method can be used.

 

Let’s begin:

Etsy - SOAR Analysis example

 

In case you don’t know, Etsy is aHandmade Productse-commerce Company.

  • It commercializes handmade jewelry (especially).

 

The idea is Great.

 

Let’s imagine that we worked at Etsy in its early days and developed a SOAR Analysis.

How it could look like?

 

Strengths

Etsy is one of the few Companies Focused on Handmade Products (in that early days).

  • The vast majority of e-commerce Businesses sell Mass produced Products.

 

Opportunities

There is a Growing Demand for Handmade Products due to their uniqueness.

  • And there is a weak and Poorly Coordinated Supply.

 

Aspirations

Etsy wants to be the Reference in the e-commerce Market for Handmade Products.

  • To be the Largest and most Reliable Company in the Market.

 

Results

Etsy will be focused on (we are making this up, of course):

  • User Growth: We want a 15% Quarterly increase in the next 2 years.
  • Operations Growth: We want a 10% Quarterly increase in the next 2 years.
  • Profits Growth: Annual Target of 5% Growth in the next 10 years.

 

After one year, you check that these Goals have been Met (until that moment).

  • The Company is Successful in achieving its Goals.

 

* Remember: we have invented all these Goals and Results.

  • This is just one example of what the SOAR of a successful company could look like.

UBER - SOAR Analysis example

 

Now, let’s imagine that we worked for UBER a few years ago.

  • Or maybe that we were Travis Kalanick (its founder).

 

 

What would a SOAR analysis of UBER look like?

 

Strengths

UBER has a very intuitive and Easy-to-use GPS Location App.

  • You know, at all times, where is your Driver and what the Route will be.

 

Opportunities

Taxis are Regulated throughout the world. And Demand is greater than Supply.

  • This App offers an “Easy” way to privatize the Sector.

 

Aspirations

Become the World’s Taxi Company (we made that up, of course).

  • Be for the Taxi Sector what Google is for the Internet.

 

Results

As UBER can Grow enormously due to its huge Targeted Market, you suggest:

  • An Annual Growth in Operations of 50% the next 2 years.
  • An Annual Growth in Profits of 25% the next 5 years.

 

After one year, you see that all your Operations Growth Goals have been Met

  • But your Profit Target hasn’t.

You decide to Analyze what went wrong, and to Update your Goals.

 

* Remember: we have invented all these Goals and Results.

  • This is just one example of what the SOAR of a successful company could look like.

TikTok - SOAR Analysis example

 

Finally, we’ll imagine that you were among the Founders of TikTok.

  • You wouldn’t be reading this, for sure.

 

Before its incredible Success, you decided to develop a SOAR Analysis:

 

Strengths

You have the Expertise of several years of Social Platforms.

  • YouTube and Facebook had to Discover what worked and what didn’t.

 

Opportunities

Everybody has a Cell Phone with a good Camera. Social Platforms can Focus on it.

  • When YouTube was born, Mobile Phones were like Bricks.

 

Aspirations

Become the most accessible and Popular Social Platform in the World.

  • Getting started on TikTok is much easier than YouTube or than creating a Site.

 

Results

As TikTok can Grow in disproportionate ways (it is very accesible) you establish:

  • An Annual Growth in Users of 100% for the next 5 years.
  • An Annual Growth in Profits of 50% for the next 10 years.

 

After 6 months you Achieved your Annual Goals.

  • So you had to Set new and More Ambitious Goals.

 

* Remember: we have invented all these Goals and Results.

  • This is just one example of what the SOAR of a successful company could look like.

Summarizing

The SOAR Analysis is a Method that helps companies Define and Track their Goals in 4 Steps.

 

Its name is an acronym for the 4 Steps proposed:

  1. Strengths: Analyze what the Company Dominates. In what it is Good.
  2. Opportunities: Study the Market and where these Strengths can be Valuable.
  3. Aspirations: What the Company wants to Achieve and When.
  4. Results: Is the Company Achieving its Goals and Milestones?

 

Differences between SWOT and SOAR Analysis:

  • The SWOT Analysis delves into the Threats and Weaknesses of the Company.
  • The SOAR Analysis Focuses on Strengths and Opportunities.
  • The SWOT Method is commonly used for Analyzing External Companies.
  • The SOAR Method is practically always used for Internal Analysis.

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