S W O T Analysis
For those who may not be familiar, a S W O T Analysis is defined as is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. As one might imagine, this can be quite useful to a golf course or club that is underperforming, considering operational or physical changes or simply seeks to better understand its competitive position.
While best done by an independent source, the SWOT Analysis can be done "in-house" but may lack the objectivity required to be most useful. The SWOT in reality is something that's done by many businesses on a regular basis, but often with no formal framework or plan.
Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can change them over time but not without some work. Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there in the market, happening whether you like it or not. You can’t change them. Each is specifically defined below:- Strengths: characteristics of the business or project that give it an advantage over others.
- Weaknesses: characteristics that place the business or project at a disadvantage relative to others.
- Opportunities: elements that the project could exploit to its advantage.
- Threats: elements in the environment that could cause trouble for the business or project.
As it relates to golf courses and clubs, many look first at the desirability of the golf course itself. I often hear the comment/question "How can such a great golf course be worth so little or struggle so much?". While certainly there are many internal factors (design, maintenance, level of service, amenities, etc.) that impact a golf course's economic performance, it is often the external factors like location, market competition, untapped opportunity and simple demographics that doom some golf courses and clubs from the start.
Without objectively identifying these challenges, it is impossible for a golf course (or any other business) to understand how to develop a strategy for success. Yes, one can do a SWOT Analysis on their own, however we've observed on many occasions that the often emotional attachments, politics and pride that come with many golf courses (especially member-owned private clubs) benefit tremendously from having an independent set of eyes and ears to make sure that even the tough questions are asked and that the agenda and plan developed is in the long term best interests of the club, as opposed to a small group of controlling members.
Doing a SWOT regularly is a good way to stay ahead of the competition.
