An initial SWOT Analysis of Armenia

To some, it might look like I would be doing what I often criticize: Taking a high ground on a topic and "smart talking myself" into a safe position to judge my environment. My intention, however, is quite different. I aim to create a dialogue that can lead to growth and improvement. In this article, I outline my view on the Strengths, Weaknesses, Opportunities, and Threats of Armenia.

I recognize that I am not the first to delve into this topic and that others have produced more comprehensive papers. I also understand that other contributions undergo peer review and are often supported by references. So why would I risk my reputation with another potentially slightly flawed and biased article representing a personal view?

My goal is not to provide a definitive answer to Armenia's problems and opportunities but to inspire others to create their own SWOT analysis. Some might challenge me, while others might be inspired; others might completely ignore my views and start with their version of a SWOT. All that is okay. The moment people start conversion, this article fulfills its mission. The more Armenians think about SWOT, the more we can focus on doing the right things.

If enough people write me, we commit to writing a revised SWOT Analysis of Armenia with all the feedback I got. Alternatively, I would like everyone to publish their views.

Strength

Passion

Internationals in Armenia who are not Armenians and Armenian repats could have stayed outside of Armenia. One thing that attracts people to Armenia is the vibe, and people are doing something. Other countries might be laid back, with few things to be changed or improved, but in Armenia, things are evolving.

Education

If there is one hope, it is the next generation. The desire to educate kids is excellent. While I see many challenges in our countries' education systems, I see tons of initiatives in Armenia, from Tumo to COAF, that will shape the future of this country.

Hidden Assets

Some Armenians are very loud. They cannot stop telling the rest of the world how great they are. If you ask them, they are the leaders in their field. Simply the best.

But some people are definitely on to something. Often, they are not that loud. Great things related to artificial intelligence are being created. To find them, look for those who do not always brag.

Small Country

People would see this as a weakness, especially in geopolitical situations. However, Armenia can become an agile country that solves problems because it has less demand to get everyone to agree to everything. We can do what Israel, Switzerland, Singapore, Estonia, and other small countries already did: be more innovative than others.

Diaspora

People would see the diaspora as a weakness. Some claim it should be better organized. But let's focus on the good things. When I see the people who returned to Armenia—and there are a lot of them—they bring knowledge, networks, and often money.

Weaknesses

Being internationally stereotyped

There is a stereotype of Western and Central Europeans about Eastern Europe. Armenia's problem is that people in the West may see Borat when they hear Armenia. Yet another "-stan" country? One colleague of mine once phrased it well: "People believe we are riding camels before they come to Armenia, and when they are here, they see a modern country."

People think you are crazy when you tell them you left Vienna to live in Yerevan. And even more, if you tell them you prefer Yerevan to Vienna.

Arrogance and talking a lot

I met the people I talked most with in Armenia. I met people who did not stop talking, and everything that came out of their mouths was bragging, even if they had no clue what they were talking about. And, of course, they were the best, the greatest, and the smartest. Arrogance is often combined with a lack of critical thinking.

Missing internationalism

You are with an international group or at an international conference. A speaker gets up to a stage and starts talking... in Armenian. This is one symptom that can be improved. Armenia is not the center of the world. At an international event, if you do not feel comfortable talking in English, it is better not to speak at all. International events with participants from all over the world are held in English.

Too much focus on B2C

There is no surprise here. Picsart, Krisp, and many other successful companies are B2C (or at least have a B2C offering besides B2B streams). However, in the B2C market, people often seem to have the same ideas. One example out of many is fashion apps. I have seen four startups here wanting to create a fashion app. They want to enter a saturated market with vague ideas of a possible differentiation.

But fashion apps are just one example out of many. I have seen yet another e-commerce platform and many other streams.

Lack of deep research

If a fairy godmother granted me wishes for startups in Armenia, I would seek startups that work in more complex fields and solve more detailed problems. Think of how many companies are exploring autonomous driving in Israel. What about AI in healthcare? I come from Austria, which is not the most startup-friendly country in the world. However, they manage to have startups that use AI for breast cancer detection. We need such startups in Armenia, and they should be the heroes of the startup scene. Everyone should talk about them.

Dependencies

What if Russia stops supplying cheap gas or stops trading with us? The good news is that we are working on it. However, when we reduce our dependency on existing players, we must also avoid falling for another party.

Strategic thinking and sticking to it

Over the last decades, neighbors have done one thing better than Armenia: marketing. Their strategy was clear. They bought themselves into organizations and bridged people until they could start their invasion of a peaceful territory without fear of being reprimanded.

Armenia needs strategic thinking. Currently, only a few know-it-alls regularly compete for who knows best.

Opportunities

Support your initiatives

We have initiatives here. I can only list some of them: CSIE, COAF, TUMO, AYB school, or EPIC. They are doing great things. Instead of creating new initiatives, visit these groups and ask them what they need to grow.

AI in Domains

If there is one piece of advice to founders, it is to stop making B2C apps. Please. I cannot see yet another app that is supposed to solve a problem that 1000 others are already solving. And no, you are not solving it better.

We need AI in healthcare, robotics, and energy. We have a semiconductor industry. Use it.

Innovation Paradise

I imagine Armenia of the future as a country driven by the next generation. I have seen ambitious young people with all the skills needed to bring change. All we need to do is ensure they can spread their wings. This might mean we need to encourage the old generation a little bit more so they do not get in the way.

Threats

Geopolitical situations

There are so many articles on that already. Yet another article cannot bring anything new.

Falling back in the AI race

This can happen if we need to invest more. We must consider how to avert this so that we do not join forces with the EU, which has de facto ruined its competitiveness.

Narcissism

If there is one group that could prevent Armenia from rising, it is a small group of Armenians who are highly narcissistic.

I am curious: what is your SWOT analysis of Armenia?