This differentiates subway and makes it a loved brand amongst the various food franchise’s. ), Relationship Marketing, Paul Chapman Publishing, London, pp. In January 2004, the Subway Restaurant chain was named the No’1 franchise opportunity, as it has been for 12 of the past 16 years in Entrepreneur Magazine’s annual Franchise 500. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, SWOT analysis of Tata Motors - Tata motors SWOT analysis, SWOT analysis of Bingo - Bingo SWOT analysis, SWOT analysis of McDonalds - McDonalds swot analysis, SWOT analysis of Nokia - Nokia SWOT analysis, SWOT analysis of Android - Android SWOT Analysis, Adidas SWOT analysis - SWOT analysis of Adidas, Dominos SWOT analysis - SWOT analysis of Dominos, Airtel SWOT analysis - SWOT analysis of Airtel, Accenture SWOT analysis - SWOT analysis of Accenture. Also read Subway SWOT Analysis, STP & Competitors. The United States sandwich industry is estimated at more than $121 Billion as of the end of 2007 (Eyre, 2008). Legal. It is currently the third largest fast food chain globally after YUM! SUBWAY's® annual sales exceeded $6.3 billion dollars, while countless awards and accolades have been bestowed its chain over the past 40 years. McDonald’s has 36,615 while Burger King has 15,243. The competitor: specially the healthy restaurant like subway. Health benefits: They offer healthy subs sandwich that is preferred and much better as compared to food items offered by other fast-food chains like McDonald’s. ; Crosier, K. (2004), ‘Editorial’, Marketing Intelligence and Planning, Vol. In Future it will be getting higher its chain by presenting more openings in many other states. 58-70; Howard, J. SWOT Analysis Case Study SUBWAY Faculty : Faculty of Accountancy Course : AC110 – Diploma in Accounting Name Student ID Aiman Hakimi bin Mohd Sapudi 2018800936 Muhammad Irfan Iskandar bin Ramzam 2018680054 Muhammad Muaz bin Omar 2018289952 Mohammad Syafiq bin Ramli 2018256506 Afif Fikri bin Abd Aziz 2018404766 Table of Content DETAILS PAGES 1.0 EXECUTIVE … So, Subway can actually exploit this and become more successful as brand and restaurant. Today in the digital era online presence is equally important. Subway restaurants lack the interior design and quality that would welcome everyone to stay and feel more comfortable than in the competitor’s restaurants. Strengths in the SWOT analysis of Subway : Weaknesses in the SWOT analysis of Subway : Opportunities in the SWOT analysis of Subway : 8 Non-Technical Skills explained with Examples, Natural Unemployment Definition – Components, Factors and Reduction Methods. 2, pp. Its current CEO is Suzanne Greco. In this essay I will be generating my argument that Subway is an example of innovation in action through its products, processes and growth. Buttle, F. (1996), ‘Relationship marketing’, in Buttle, F. Follow us on Twitter @In… October 30, 2020. 3. In the same way, Denmark has one of the highest per capita incomes in the world as well as the European Union. This is a considerable threat to Subway as the failure to address this may result in a further loss of market share to its competitors. By. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. This assignment provides brief understanding about sandwich industry and what are the innovations and the new technology managed within the organisation lets analysis in what factors Subway Sandwich Shop makes it standpoint on own. Subway Swot Analysis just from $13,9 / page. This results in poor satisfaction level of the customers leading to the customers changing their preferences over time. Subway has no company owned outlets, they are 100% franchised. Regional chains have also seen significant revenue growth, contributing further momentum to the marketplace. The most notable were the television commercials featuring Jared. SWOT Analysis Resources BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. Has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky. Competitors in the UK. Subway Competitive Analysis Subway Case Analysis SUBWAY ® is the market leader in sub and sandwich shops offering a healthier alternative to traditional fast foods. ANALYSIS OF SUBWAY PRESENTED BY HIRA, SHAHWAR, NIMRA, AHMED, SAHAR, SARA Worth: $10.314 Factors: Eating healthy and obesity is also an opportunity for subway Co-Factors: It also provide the fresh and customized sandwich flavor away from the typical Junk food Sales: A subway restaurant, on average generates $422,000 in sales annually. Restaurant … Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. 415-41. The major players in the fast food industry in UK are Subway, McDonald’s and Yum! The table below highlights these Strengths, Weaknesses, Opportunities, and Threats. View More Articles. High Brand Loyalty: It has a high brand recall and following among its customers. As a substance of point, the SUBWAY sequence functions more and more divisions in the United States and Canada than McDonald’s organises. Restaurant Industry sales are expected to reach $580.1 billion in 2010, with the Industry employing almost 12.7 million individuals in 945,000 restaurant and Food Service Outlets nationwide, according to the National Restaurant Association’s 2010 Restaurant Industry Forecast.The Forecast projects that while overall restaurant industry sales will increase in current dollars by 2.5% over 2009 figures, the numbers translate to an inflation adjusted decline of just 1/10th of 1percent. (ed. Vegetarian Foods: Mostly Subway offers different kinds of meats but lacks in a varied menu for vegetarians. Restaurants will continue to adapt to the latest menu trends and consumer preferences. Academy The following is the second article of a 6-part series aimed at guiding you through conducting a complete competitor analysis report. Success factors for fast food franchisees will include products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and consumer convenience. Including healthier meals into its menu and giving much attention to obesity and diabetes have supported consumers’ choice for Subway (Tarantino, 2005). Yum! February 2, 2019 By Hitesh Bhasin Tagged With: SWOT articles. • Subway is more skewed towards middle to upper income customers than competitors. The company also operates restaurants under the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. It needs to diversify in this front as well. The commitment cannot be the same across all the restaurants. get custom paper . With a target audience of adults ranging from ages 18 to 34, Subway is now targeting those individuals who are looking for fast food that is healthy. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Each company possesses a strong brand and is an established name in the casual eating restaurant industry. McDonald’s Corporation (McDonald’s) is the world’s largest foodservice retailing chain with 31,000 fast-food restaurants in 119 countries. Get traffic statistics, SEO keyword opportunities, audience insights, and competitive analytics for Subway. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. Growth is driven through a combination of aggressive franchise strategy coupled with tactical marketing campaigns and innovative menu concepts that appeal from both a demographic, as well as a health standpoint (Mintel Int’l Group, 2005). Through the economic support of long-time comrade Dr. Peter Buck, then in 1965 Fred starts the head Subway Sandwich Shop in Bridgeport Connecticut. The corporation that owns the trademarked name of Subway is Doctor’s Associates, Inc. (DAI). Let's stay in touch :), Your email address will not be published. The strengths and weaknesses are obtained from internal organization. This is probably the best strength in the SWOT analysis of Subway. 22, No. In 2010, the United States fast food market is forecast to have a volume of 37 billion transactions (Figure 1). Drive through: Also one of the services offered by its competitors is drive through the facility for the quick and working class people. By the time of late 1974, the couple had started more than sixteen shops everywhere Connecticut and some other sources indicate more than sixteen. Subway ® represents a poignant example of a fast food franchisee ready for success in the future fast food market. Activation Author. For example, in 2012, it was listed number 2 in the best performing 500 franchises on the Entrepreneur Magazine. Subway SWOT analysis 2013 by Strategic Management Insight 1. These are the largest companies by revenue. However, the failure of Subway to respond appropriately to this growing concern, has enabled other competitors to gain market share from its franchises (Peterson 2016). VAT Registration No: 842417633. Subway Sandwich Artists job is a low paid and a low skilled job. Additional menu options have also been added to answer competitors’ trends and to place more focus on the children’s segment. You can follow me on Facebook. Subway presently functions 23,982 restaurants in 85 different countries, and for the reason that of its’ merchandisable achievement, the establishment was designated to be the matter of a marketing exploration. SWOT analysis of SUBWAY. The first in the list of top competitors of Subway is McDonald’s McDonald’s and Subway are two of the world’s largest international fast food restaurant chains. Competitor Analysis. Subway's main competitors include Darden Restaurants, Yum China, Pizza Hut, McDonald's, Domino's Pizza and Starbucks. Your email address will not be published. If we consider the customization angle, no other fast food brand has achieved the level of popularity which subway has achieved. (2004), ‘The design, implementation, and monitoring of a CRM programme: a case study’, Marketing Intelligence and Planning, Vol. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. Subway has been careful not to alienate any consumer’s preference by offering options that include regular sub sandwiches, low-fat options, Atkins friendly wraps, salads, snacks, and desserts. Subway is happy to advertise that with all their sandwich features, there are over 2 million different sandwich options that are available to their consumers (www.subway.com). In Subway SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. It is a working document that should be regularly updated and can be used to gain alignment within the organization around where it competes with competitors. In real terms, the sandwich, subs and wraps market has grown 70% since 1999, or from $9.9 billion to an estimated $16.8 billion in 1999-2004. Related Posts . (ed. The Subway VRIO Analysis shows that Subway's employees are a valuable resource to the firm. Subway Analysis of Strategy, Marketing and Competition. Gross domestic Product and employing 9% of the U.S. workforce. Subs but it needs to diversify into different kinds of healthy options and stay in the competition. And believed to be one of the world’s leading submarine sandwich chains with more than 20,000 restaurants in 75 different kingdoms and countries. After the long-long span in the year of 2004, the SUBWAY sequence passes in its 39th year of process. This assignment provides brief understanding about sandwich industry and what are the innovations and the new technology managed within the organisation lets analysis in what factors Subway Sandwich Shop makes it standpoint on own. Now in its fourth year with Valpak, the. It is currently the fastest growing franchises in the world. (Denmark Unemployment rate 2009) Therefore, people have more money to spend. While, strengths and weaknesses are internal factors, opportunities and threats are external factors (Needham et al, 1995). Subway needs to apply this in their restaurants as well. Responding to evolving consumer expectations for health, fresh, custom-made sandwiches; Subway’s marketing program addresses these expectations through a number of approaches. 3rd Jul 2017 While most fast food restaurants react to this phenomenon by modifying their menus to include healthier choices, Subway benefits from the 15% annual sales growth of sandwiches compared to a lean 3% growth for hamburgers and steaks (McCarty, 2007). In 2009 Subway tried to strive for the Danish market again. Over the three-year period that Market Smart has been using Valpak as part of their overall marketing campaign, average store sales have experienced a +45 per cent growth rate compared to similar campaigns when ADVO was part of the marketing mix. Keywords: subway essay, subway competitive advantage. No. December 08, 2020. subway.com Competitive Analysis, Marketing Mix and Traffic - Alexa Log in Termed “fast-casual,” these restaurants are dominated by Mexican chains, and sandwich restaurants offering fresh-baked breads and specialty sandwiches. SWOT Analysis is a proven management framework which enables a brand like Subway to benchmark its business & performance as compared to the competitors … As mentioned in the introduction part in mid-year of summer 1965, Subway began its humble start in the quick service restaurant industry (QSR) in Bridgeport Conn. Fred Deluca was a young man looking for a way to pay for school, and Dr. Peter Buck was a man willing to write a one thousand dollar check that started the original Subway Sandwich shop. Subway was also the first to put focus on the breakfast daypart by introducing breakfast items to its menu in 2010. Consumers’ interests for hamburgers and fries have been steadily decreasing to favours sandwiches, which gives Subway a competitive advantage over competition such as MacDonald’s or Burger King, for example. The unemployment rate in Denmark with its Subway Soot Analysis By paranoiacs (GAP) per person in the world. They can utilise their already established customers to change their eating habits and generate more loyal customers. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Diversification: Subway has stuck with only one kind of product i.e. Easy Starting of franchise: Franchisee staff training is structured, brief and designed to assure rapid start-up for new employees as these are all carried out by the agency which has hired the brand name of Subway. If they also start providing low-fat food options this can seriously damage Subway’s customer base. Despite the economic downturn, the Industry will remain a cornerstone of the economy, representing 4% of the U.S. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. cit. It is owned and operated by Doctor’s Associates Inc. Health Consciousness: People are getting more and more health conscious in today’s world. Brands, McDonalds, Wendy’s, and Jack in the Box. This ensures easy set-up of new restaurants at far off locations and smooth functioning without any obstructions of different regulations. The marketing strategies of creating clear brand recognition, brand and product association, and market demands, have strategically positioned Subway to advance market share into the near future. Do you have a 2:1 degree or higher? Daniel Jennings -December 29, 2020. We will write a custom Research Paper on Company Analysis: Subway specifically for you! Ali Carroll “Know thyself” is a Greek aphorism that’s as true today as it was thousands of years ago. Global Subway Accessories Market Analysis by 2020-2025. Subway also markets through a national sponsorship in events such as American Heart Association Heart Walks and local events such as triathlons, and children’s sports teams. Learn More. Study for free with our range of university lectures! Whereas, the opportunities and threats are generally related from external environment … • Lunch in most popular occasion. *You can also browse our support articles here >. This sheer difference gives Subway an added advantage to cover larger potential population. Subways strategy for growth lends itself to the cooperative nature of innovation. As one of the leading companies in its industry, Subway has numerous strengths that help it to thrive in the market place. Management Each subway franchise acts as its own business or is part of a mini chain of franchises; nonetheless this allows a large degree of innovation to occur since individual stores will become increasingly creative to meet the needs of their individual markets. T horelli, H. B. Subway reached a milestone in 2002 when it surpassed McDonald’s in number of locations in the U.S. Today Subway is the world’s largest submarine sandwich franchise with over 13,000 U.S. units and over 20,000 worldwide units. 1-16; Donaldson, B. and O’Toole, T. (2002), Strategic Market Relationships, John Wiley and Sons, Chichester; Egan, J. It is the largest single owner of a restaurant chain and largest restaurant operator in the world. Bourlakis, M. A. and Weightman, P. W. H. (2004), Introduction to the UK Food Supply Chain, Blackwell Publishing, Oxford; Hughes, D. (1994), Breaking With Tradition, Wye College Press, Wye. A relevant Value Chain Analysis Example is provided by Walmart that continuously analyses its value chain activities to remain innovative, minimise operational costs and offer low-cost yet reliable services. This then allows the company as a whole to fit in to the diffusion of innovation model as innovators, early adopters and early majority. Customers change their mind and like to change. KFC is operating in 19,952 locations while Taco Bell has 7000 restaurants. Subway announced its new logo which will be implemented from 2017 onwards, globally. of stores: Subway has 44,852 outlets compared to its competitors. Competitor Analysis. They began using the Subway name in 1968 and the first Subway submarine shop was franchised in 1974. The United States fast food market has seen a healthy rise in growth within the last three years which forecasts can be sustained. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%. Being part of a highly competitive and dynamic market, SUBWAY faces a strategic marketing challenge as to what specific marketing mix to use in order to sustain a differential advantage while maintaining sales growth and, above all, profitability. It results in low performance and high employee turnover, which increases training costs and add to overall costs of Subway. of stores: Subway has 44,852 outlets compared to its competitors. Subway currently competes with Burger King, McDonald’s, Wendy’s, Taco Bell, KFC, Blimpie, DÁngelo’s, Arby’s, Pizza Hut, Papa Gino’s, Applebee’s, Hardee’s, Mr. Sub (Canada), Quizno’s, Panara Bread, and any small mom and pop type sandwich shops. This has allowed Subway to be a very good example of diffusion of innovation with the company being placed in the model rather than the consumers. SWOT stands for strengths, weaknesses, opportunities, and threats. KFC is operating in 19,952 locations while Taco Bell has 7000 restaurants. Posted via Industry Today. Subway can analyse value chain activities to reduce the costs, find better deals with suppliers and offer high quality products at affordable prices. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. (1960), Principles of Marketing, Irwin Publishing, Boston, MA. This is not an example of the work produced by our Essay Writing Service. The global Subway Accessories A size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of xx% in the forecast period of 2020 to 2025 and will expected to reach USD xx million by 2025, from USD xx million in 2019. Wendy’s operates over 9700 restaurants in 20 countries, has been included in Fortune magazine’s list of top 500 US companies, is headquartered in Dublin, Ohio, and employs about 57,000 people. 4, pp. Buying Stock in Subway is a Problem Because it is a Privately Held Company. Customer Analysis • 78.7% of adults were patronized to fast food of which 31% went 14+ times in the last 30 days. ), Science in Marketing, John Wiley and Sons, New York, pp. Hot Head Burrito is another Mexican style restaurant that would be considered a competitor. Our academic experts are ready and waiting to assist with any writing project you may have. The government plays an important role. Compare Subway to its competitors by revenue, employee growth and … It is also not very far away from its closest competitors, though in restaurants it is solidly at the second position (keeps changing year on year). This sheer difference gives Subway an added advantage to cover larger potential population. The ones who eat here are high brand loyalists. Their menu mainly includes Subs and salads. Free resources to assist you with your university studies! In late 2003 Subway announced an agreement with the Coca-Cola Company that will make Coca-Cola beverages available in more than 20,000 Subway restaurants worldwide. Primarily Subway, Quiznos, and Panera Bread have fueled growth and momentum. Subway has 44,000+ franchises across 112 countries and territories. cit. Get your first paper with 15% OFF. Four of the company’s highly recognizable brands, KFC, Pizza Hut, Long John Silver’s and Taco Bell, are global leaders of the Mexican, chicken, pizza, quick-service seafood categories. You can build it the way you like it with the various ingredients on offer. Wendy’s International (Wendy’s) operates three chains of fast food restaurants: Wendy’s (the third largest burger chain in the world), Tim Horton’s, and Baja Fresh. A. and Sheth, J. N. (1969), The Theory of Buyer Behavior, John Wiley and Sons, New York; Womer, S. (1944), ‘Some applications of the continuous consumer panel’, Journal of Marketing, Vol. Bad Reputation: There have been some lawsuits against the brand regarding stale and unhealthy food that was being served to the customers. 132-6. Valpak sales team, have consistently produced positive sales results for market Smart and Subway. McDonald’s and KFC rely heavily on oily and fried foods which are completely opposite to what Subway aims for. S haw, R. (1998), Improving Market Effectiveness, Economist Books, London. Subway campaign has remained so successful that it has become the agency’s standard direct mail buy, reaching the total market of 445,000 households each month. PESTEL analysis Political Factors The performance of the brand is affected by the political factors. The company has over 28,400 franchised units in 87 countries as of September 2007 and is the fastest growing franchise in the world. This is where Subway lacks. This damages the brand’s trust and makes people reluctant to try them again. Reference this. The Subway example represents marketing and product strategies that are classic examples of focusing on market demand, consumer trends, product leveraging, and innovation. Subway Restaurants has been serving consumers great tasting food since 1965 when it began in Bridgeport, Connecticut as Pete’s Submarine Sandwiches. Subways fast food varies from other fast food chains in that it is a more healthy option that is made to each person’s specifications. Driven by consumer interest in healthier food choices and a growing demand for premium ingredients, sandwich chains are expanding locations as well as variety. Trend Change: If people start caring about their food (somewhat unhealthy) more and might want more spice of taste to it they may choose to move to other restaurants. McDonalds operates largely in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people. Brands (34,000 sites) and McDonalds (31,000 sites). Strengths in the SWOT analysis of Subway : No. A competitive analysis shows these companies are in the same general field as Subway, even though they may not compete head-to-head. It is headquartered in Milford, Connecticut. Many Employees: Subway employees’ job is a low paid and a low skilled job. Subway SWOT analysis lists down the strengths, weaknesses, opportunities and threats to any organisation, but does not tell management what can be done by these. Their strategies transcend the fast food market and apply to many other markets and products. Subway Sandwich Shops was established in … The strategic marketing issues facing Subway Restaurant is the question of how to continue grow their market share with many other fast food options entering the marketplace. SWOT AND PESTLE. It has 44852 restaurants in 112 countries and territories. 160-86; Webster 2000, op. However, they may not have the largest market share in this industry if … It was founded in 1965 by Fred De Luca and Peter Buck. However, this chain is currently experiencing multiple problems caused by its expansive growth and the growing pressure from the competitors in the UK market (Peterson, 2016). Disclaimer: This work has been submitted by a university student. Here are 5 Alternative Ways to Profit from Subway. Subway has a lot of competitors for example McDonald‟s, Burger King and Sunset Boulevard. Yum! 124-7; Lindgreen, A. Satisfaction and Level of Service: Because of the training of the staff is outsourced to the ones who have franchised does not ensure a common level of service satisfaction around all the Subway stores around the globe. Subway Place & Distribution Strategy: Following is the distribution strategy of Subway: Subway mainly operates through franchises and is one of the fastest growing franchises. ), How to Conduct Consumer and Opinion Research, Harper and Bros., New York, NY, pp. However, Subway has not been satisfied thus far; instead, more intensified efforts have been made to improve business during the dinner hour. Indeed, at the end of 2010, Subway was larger than McDonald’s by about 1,012 outlets globally (Covert & Gibson, 2015). It became immediately apparent after the first mailing that the Valpak campaign was going to be far more successful than the previous direct mail program had been. 386-97; Culliton, J. W. (1948), The Management of Marketing Costs. Unlike many other restaurants these days, Subway is still a privately held company, which is not traded on the stock exchange. The rise of Subway rapidly can also be accounted because of increasing health related problems by eating junk food and so customers have started moving towards healthier options. 22, No. Subway Sandwich Shops was established in 1965, and has remained franchised into the minds and tummies of kinfolks all around the places. Subway chain uses only freshly baked bread and fresh ingredients. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The combination of an extraordinarily successful lift in sales, the Valpak specialized billing system and the high level of customer service from the local. High employee turnover. This represents an increase of 5.3% since 2005. That owns the trademarked name of all Answers Ltd, a company registered England! In low performance and high employee turnover, which reduces the amount of time spent on preparing meals at.! Into the minds and tummies of kinfolks all around the places the level of the U.S. workforce any! $ 121 billion as of September 2007 and is Therefore subject to a subway competitors analysis. Of 2010 the number third spot being beaten only by mcdonald ’ s customer base as they can the. Results for market Smart and Subway Paul Chapman Publishing, London by paranoiacs GAP! Subway was also the first to put focus on the Entrepreneur Magazine Principles. For burgers and steaks the 245 pounds Jared lost by eating a Subway sandwich Artists is!, you can also browse our support articles here > Subway sequence passes in its 39th year 2004. Two years former student Fred DeLuca and Peter Buck, then in 1965 by Fred Luca. Available in more than $ 121 billion as of the customers leading to the nature... 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