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The Five Forces Model Analysis Of The Subway Restaurant

1424 Words6 Pages

The 5 forces model analysis of the subway restaurant has been presented as below. Threat of entrants Threat of substitutes Power of suppliers Power of buyers Competitive rivalry 1. Setting up 2. Product differentiation 1. Convenience shops 2. Mid range restaurants 3. Pre cooked food 4. Other social activities 5. Health food shops 1. Farming industry 2. Worldwide market of suppliers 3. Alliances 1. Consumers 2. Little brand loyalty 1. New entrants likely 2. Price wars 3. Overall demand is increasing 4. Operation manuals The major threats of entrants to the subway are the setting up of new product ranges by the competitors like McDonalds and Burger King. Similarly, the differentiation of the product is also marked as a threat for the …show more content…

nd). According to the BCG matrix the different business units of the company can be divided into four different categories as defined in the diagram below. The first strategy that is being presented here is the development of new franchises in Oman. According to the BCG matrix, this would be marked as the Stars since; it has been observed that the subway has achieved the highest level of restaurants all across the globe even surpassing its greatest rival which is McDonalds. This strategy so far has been proven to be a great success all across the globe, as the subway restaurant has opened up around 34, 000 franchises globally. This indicates that opening up new franchises in Oman will not only attract more customers but will also increase the market share of the restaurant (European Franchising, 2009, p. nd). The second strategy which is the opening up of a customer care service and setting up a customer care team which will be available 24/7 for the customer is also supposed to be Stars according to the BCG matrix. This is because of the reason that a customer care team in the regions of the world has proven to be very effective so far and has added a lot of market value to the franchises. The customer care team members identify the potential consumers of their products and also inform them regarding the healthy products of the restaurant. Moreover, they also provide online order services and free delivery to the customers all around the clock. These two strategies have been proven to be stars according to the BCG matrix in other regions of the world. Hence it can be said that similar results will be produced if these are to be implemented in Oman as

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