Subway In China Case Study

1. The concerned threat is about intellectual property right of Subway in China. Subway brings the various intellectual property to China, but China is not a good environment for protecting the intellectual property. We call China as a Fake world. We can find out legal issues between international companies and the local Chinese companies easily. Even though the Chinses government offers a number of way to protect the intellectual, the legal system is ambiguous and doubtful. Usually, international companies are victims of these battles. To implement franchising in China, Subway provides everting such as patents, know-how, training, services, and products. It is a big threat to the franchising of Subway as there is no strict legal system to monitor and protect the intellectual property of Subway in China. Already other fast food restaurants such as Starbucks, McDonald’s, and KFC have been copied by counterfeiters in China. I read an article that said there is Fake

Subway should create a mean to bridge a cultural gap such as an application. Chinese are familiar with using social network. For example, If Subway use the social network to teach how to use Subway, chinses can absorb information easily from Subway. To take on suitable franchisees, Subway should develop educational tools such as a regular seminar. To separate Subway from (potential) imitators, Subway should have elevated level of differentiation or make some benefit for Subway’s customers such as a coupon or membership service. It can do their utmost for customer satisfaction and drive customer loyalty. Subway also could help people that are willing to set up a store but do not have the required money. For that purpose, Subway could expand and give credits to their future franchisees. As exchange they could get a higher part of the revenue than the usual fee until the debt is payed. After this, the franchisees would get into the regular