Introduction
Subway is an American fast food restaurant franchise that primarily sells sandwiches andsalads. It is owned and operated by Doctor 's Associates Inc. Subway is one of the fastest growing franchises in the world, with 44,280 restaurants in 110 countries and territories as of September 18, 2015.] It is the largest single-brand restaurant chain and the largest restaurant operator in the world. The reason for choosing this outlet is they are committed to customer satisfaction through offering high quality food with exceptional service and good value. They take great pride in serving each other, their customers and their communities. They seek continuous improvement in all that they do. They value a sense of urgency and emphasize an innovative, entrepreneurial approach to business. They expect fairness and mutual respect in all our activities. They know their success depends upon the initiative they take
…show more content…
Threats
Since Subway concentrates on nutrition and health consciousness, any kind of negative news could impact the brand equity. Competition is fierce in the fast food segment and the rivals are having higher brand equity.
2.2 Pest analysis
Political factors
The political factors affecting Subway are the health regulations where Subway has an advantage. Many organisations and consumers are deriding the fast food concept and the utilisation of genetically modified food which are of low quality and used by the competitors. 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