Subway’s business strategy includes easy access, healthy perception, and ability to customize. Subway restaurants require less space than other fast-food restaurant, such as McDonald’s, so it is easier for Subway to build and open in downtown. Also, the food in Subway is healthier than in other fast-food restaurants. People are more health-conscious now than before, so Subway can attract more customers who what something fresher or lighter than burgers and fries. In addition, people can customize meals to their specifications, so people can always try something new in Subway.
However, before you do so, make sure you research the number of Subway outlets in that area to lower the competition. Subway is one of the most famous brands in the world, so getting customers and workers will not be a problem. There will be a few limitations, but the advantages outweigh them. Subway also has a clear way to communicate and contact them; and they give complete training to anyone interested in owning a
Subway is a privately held American fast food restaurant. The subway franchise was established in 1965 and still sells some of the world’s best submarine sandwiches today. Subway advertises it’s delicious looking subs using billboards, commercials, and advertisements. One commercial for example, features simple but effective advertising. This commercial is very simple and shows the mouth watering submarine sandwiches and states 2 words: eat fresh.
Expansion into developing nations with different social and cultural parameters would require altering the menus and catering to the specific customer needs. Economic factors The low franchising cost comparing to the competitors is an advantage for Subway. However the cost of ingredients and supplies used in the preparation of food is higher than that of the competition due to the need for fresh ingredients. Customers have a perceived value which is higher than that of the product offerings of alternate fast food chains. Social
The Subway started to explore Russian market since the beginning of 1990s. The first Subway café was opened in Saint – Petersburg in 1994 (Denero, 2011). The Moscow market appeared just 4 years later in 1998 (Оbuhova, 2001). Today there are 201 Subway restaurants (Subway, 2011a) in 47 cities (Subway Russia, 2011a). The Russian Subway uses the social networks since July of 2009 in order to be in touch with the potential franchisee and clients of the restaurants, to increase the information knowledge about the franchising itself and the fast food Subway (Marketing manager Rus, personal communication, 2011–05-01).
Subway is aware of its target market population’s irregular food habit and majority do not like to opt for variety of food choices, as these customers prefer to choose what they want. Subway prepare its sandwiches as per customer’s preferences, in front of them according to their choice. Subway is practising the choice of “point to order”, which customers will get what they want with their selection. It is the exact opposite way of delivering service when compared to its competitors, such as, KFC, Mc Donald’s, Wendy’s, and so
Furthermore, the case was mainly tackling the intensity of competition for subway as a sub fast food restaurant demonstrating the growing direct competition among Subway’s rivals such as Arby’s, Miami Subs, and Schlotzsky’s and also the indirect competition with McDonald’s, Burger King, and KFC. In addition, the topic was talking about the competitors’ effort to enter the market by initiating upscale shops that go beyond the fast food service, offering eat-in business and family gathering along with a variety of menu offerings including salads, sandwiches, pastas, soups and desserts. Also, some restaurant went beyond the traditional sub offerings introducing a wide range food including gourmet burgers, gyros, chicken and shrimp platters, as well as hot and cold subs. Again, Subway was competing to offer the best value for the price paid to get over Arby’s, Blimpie and Jerry’s Subs who go head-to-head with
INTRODUCTION • Research background With a mixture of fresh ingredients, a whole lot of customer service, and a dash of innovation, the SUBWAY® brand continues to be the leader of providing nutritious and delicious sandwiches the whole family will love (Pradhan 2007, p.402). And in the end of 2010, Subway had 33,749 restaurants worldwide, compared to McDonald’s 32,737 (wsj.com 2011). • Company profile SUBWAY restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984; since then, the SUBWAY concept has gone around the world, with restaurants opening from Argentina to Zambia. As of 15 June 2012, Subway has 36979 Restaurants in 100 Countries with 106 Restaurants in Malaysia; the restaurants are committed to offering high quality food and exceptional service. The SUBWAY brand is famous for its made-to-order sandwiches and salads.
Competitor SWOT Analyses 1. Churreria La Lola Offerings Strengths Weaknesses Product La Lola’s main product is churros that come in variety of flavors, sizes, and dips. What makes La Lola as our competitor is that they offer Ice cream Sandwich Freshly fried churro buns with freshly scooped gelato--Vanilla, Dark Chocolate or Matcha They are well-known already that’s why whatever they introduce, the customers will patronize it. It is open every M-Th , Sun from 11AM-11PM; F-Sat 11AM-12MN The churro buns are too oily and it’s quite messy to eat. Their churro ice cream sandwich feels like it 's under cooked, the ice cream have some after taste due to the fact that they use gelato, also melts easily; turns into soup state after just a few
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.