There are many business practices that can be applied to eSports teams to ensure proper management and financial security. One of the most effective organizational tools is SWOT analysis. It allows organizations to understand their team strengths, weaknesses, opportunities, and threats. Once these elements have been identified, a strategy can be developed to take advantage of all four categories, while minimizing or eliminating any element that may be a potential liability.
Strengths and Weaknesses
So, what is a SWOT analysis for eSports teams? In their case, strength and weakness both relate to factors outside the team’s control. For example, if an organization has talented players but lacks sponsors, it will not be able to access capital without adequate branding. Likewise, if a team has sponsors, but does not have a solid reputation, it will not be able to leverage its brand in the industry.
An organization’s strengths typically limit or expand what is possible for a team in terms of goals and objectives. Similarly, weaknesses may strengthen an opponent’s position over a weaker organization. A strong player with weak leadership is not nearly as competitive when compared to a strong player with an effective leader.
Opportunities and Threats
Generally speaking, opportunities are positives in the industry that may be beneficial to the team’s operations. For example, if a game developer is known for supporting eSports teams, they may provide sponsorship opportunities in the form of prize pools. Similarly, if a team has strong performance at an event, they are likely to attract more sponsorship opportunities.
The main difference between opportunities and threats is that opportunities are outside circumstances that can be controlled by the team. For example, if the game developer provides additional prize money for winning teams, this would be considered an opportunity because it was not guaranteed before the result.
Threats, on the other hand, are circumstances that have a negative impact on the team’s goals and objectives. If a sponsor withdraws their financial support due to poor performance, this would be considered a threat because it directly affects the team’s revenue stream.
Why eSports Teams Should Do SWOT Analysis
A well-executed SWOT analysis example for eSports teams can help organizations continue to develop and improve their operations. By prioritizing which elements to focus on, an organization will be able to take advantage of opportunities that may lead to sustainable growth. Likewise, by minimizing threats and strengthening weaknesses, organizations will make themselves more competitive in the industry while greatly reducing the risk of failure.
While there are many other factors that can be considered during this process such as competitor analysis and the impact of eSports on the larger market, a solid SWOT analysis template and execution is a great way to create a proactive approach to understand and improve your organization.
Individually, players can do a personal SWOT analysis among themselves, as well as a case study on their performance over time.
SWOT Analysis for eSports Teams
As to how to do a SWOT analysis in such a way that it will benefit eSports teams, an organization must look at both internal and external factors that may impact the team. The ultimate goal is to maximize strengths while either minimizing weaknesses or turning them into opportunities. This can be done by using a four-step process:
1) Identify the current status of the team in terms of strengths, weaknesses, opportunities, and threats.
2) Develop the team philosophy on how they will approach each element of SWOT analysis. This should include prioritizing which elements are most important for the team to focus on before developing a strategy to address them.
3) Outline specific objectives that tie into internal strengths or external opportunities. These objectives should be SMART (Specific, Measurable, Achievable, Relevant, Time-Bounded).
4) Develop a strategy that can be executed to address both internal and external elements. The plan should begin with the most critical issues first and move towards secondary objectives.
Looking for a SWOT analysis template for your eSports team? Check out Venngage.
Using SWOT Analysis To Improve The Team
If an eSports team has identified their strengths as having talented players and opportunities as sponsorship deals, they can then interact with these elements to create a SWOT analysis that can be used to strengthen both factors. For example, if the team is struggling for sponsors due to a lack of branding, they can focus on becoming more visible in the eSports scene by attending events, streaming, and posting content to popular media outlets. At the same time, creating engaging content that highlights their fanbase can help them stand out as a business partner for game developers or other entities looking to support the industry.
The team should also consider their weaknesses (limited sponsorship options due to lack of brand reputation) and use their strengths (high-profile players with large fanbase) to create a platform for growth. One potential strategy is to sell merchandise on the player’s Twitch channel, where they can advertise during streams or team social media accounts. The organization should also look for sponsorships that are relevant to its core values because these deals will resonate with fans and create a sustainable revenue stream.
In Summary
SWOT analysis is not an end-all solution for an eSports team, but it is one of the organizational tools that should be considered by every business. Once strengths and weaknesses are identified, eSports teams can work to take advantage of opportunities while minimizing threats.
