SOFT Model

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Description of SOFT Model. Explanation.

Definition SOFT Model. Description.

SOFT Analysis is an early planning tool for strategic analysis of a company’s internal and external factors.

The SOFT Model was developed in the 1970s by Albert Humphrey. It is considered the precursor of SWOT Analysis and the PRIMO-F Model and one of the first frameworks for formalized strategic planning.

SOFT is an acronym for Satisfactory, Opportunity, Fault, Threat:

• Satisfactory refers to what is good in the current situation of a firm.
• Opportunity refers to what could turn to be good in the future.
• Fault refers to all negative elements of the present.
• Threat refers to what could turn to be negative for the firm in the future.

The implementation process of the SOFT analysis follows the same rules of SWOT.

To contextualize and correctly implement his tool, Humphrey developed six categories of application of typical SOFT issues:

1. Product: what is the company selling?
2. Process: how is the company selling it?
3. Customer: to whom is the company selling its products?
4. Distribution: how does the company reach its customers?
5. Finance: what are the prices, costs and investments?
6. Administration: how does the company manage all its operations?

By starting with replying to these 6 questions, a SOFT workshop can be most effective.

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Compare with: Product/Market Grid

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