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Subways strategy for growth lends itself to the cooperative nature of innovation. 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. Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. 5 Ways to Invest in Subway Stock or its Competitors. 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. In Subway SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Valpak sales team, have consistently produced positive sales results for market Smart and Subway. Strengths in the SWOT analysis of Subway : No. Subway announced its new logo which will be implemented from 2017 onwards, globally. Subway has 44,000+ franchises across 112 countries and territories. 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! Subway Sandwich Artists job is a low paid and a low skilled job. 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. While, strengths and weaknesses are internal factors, opportunities and threats are external factors (Needham et al, 1995). ; Crosier, K. (2004), ‘Editorial’, Marketing Intelligence and Planning, Vol. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Drivers of growth include increasing numbers of Americans in the workplace, which reduces the amount of time spent on preparing meals at home. SWOT Analysis is a proven management framework which enables a brand like Subway to benchmark its business & performance as compared to the competitors … Today that one-thousand dollar investment is worth 5.7 billion worldwide sales, and over 21,000 shops, in 75 countries, which makes Subway the largest Sandwich Franchisee in existence (www.subway.com). 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. Daniel Jennings -December 29, 2020. (Denmark Unemployment rate 2009) Therefore, people have more money to spend. 160-86; Webster 2000, op. As one of the leading companies in its industry, Subway has numerous strengths that help it to thrive in the market place. All work is written to order. Brands (34,000 sites) and McDonalds (31,000 sites). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 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. 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. 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). 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). 31 Mar, 2020. SUBWAY MARKETING Team members: Trương Gia Huy (leader) s3438408 Đoàn Khánh Linh (member) s3426374 ANALYSIS Cù Huy Thiện Trần Hương Giang (member) (member) s3445990 s3410289 Chương Quốc Đoan (member) s3425551 Course: MKTG 2105 - Marketing Principles Tutor: Ms Jis Kuruvilla Time: Thursday 9h- 10h30 Group 1 Doctor’s … 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. In addition to broadcast television and radio, their aggressive marketing plan had included ADVO direct mail for two years. The strengths and weaknesses are obtained from internal organization. However, they may not have the largest market share in this industry if … By: M Rahman | Tags: Business Environment & Strategy SWOT analysis is one of the tools which many strategic planners find very useful to analyse business environment. 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. ), Relationship Marketing, Paul Chapman Publishing, London, pp. SUBWAY's® annual sales exceeded $6.3 billion dollars, while countless awards and accolades have been bestowed its chain over the past 40 years. No plagiarism, guaranteed! Below I will provide examples to clarify my argument. Subway Sandwich Shops was established in … 132-6. Valpak has proven to be a long-term viable and compelling part of the Market Smart marketing plan for Subway. Subway Competitive Analysis Subway Case Analysis SUBWAY ® is the market leader in sub and sandwich shops offering a healthier alternative to traditional fast foods. It is the largest single owner of a restaurant chain and largest restaurant operator in the world. Subs but it needs to diversify into different kinds of healthy options and stay in the competition. 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. By. The fast food market is forecast to maintain its current growth expectations, with an anticipated Compound Annual Growth Rate (CAGR) of 2.3% for the five-year period 2005-2010. subway.com Competitive Analysis, Marketing Mix and Traffic - Alexa Log in 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. 124-7; Lindgreen, A. Bad Reputation: There have been some lawsuits against the brand regarding stale and unhealthy food that was being served to the customers. Public health crisis: nowadays the world face big problem the obesity. It was founded in 1965 by Fred De Luca and Peter Buck. Subway's main competitors include Darden Restaurants, Yum China, Pizza Hut, McDonald's, Domino's Pizza and Starbucks. Subway Sandwich Shops was established in 1965, and has remained franchised into the minds and tummies of kinfolks all around the places. 1-16; Donaldson, B. and O’Toole, T. (2002), Strategic Market Relationships, John Wiley and Sons, Chichester; Egan, J. Brand Value: Although having the highest no of operating locations in the world Subway still suffers in  brand value when compare to its biggest competitor McDonald’s. Its brand value stands at $10.314 billion. Yum! Competitors in the UK. Their menu mainly includes Subs and salads. As a substance of point, the SUBWAY sequence functions more and more divisions in the United States and Canada than McDonald’s organises. Also read Subway SWOT Analysis, STP & Competitors. Hot Head Burrito is another Mexican style restaurant that would be considered a competitor. Barton, S. G. (1946), ‘The movement of branded goods to the consumer’, in Blankenship, A. D. *You can also browse our support articles here >. Our academic experts are ready and waiting to assist with any writing project you may have. 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. There were more than 20 Subways in Denmark in the 1990s but 10 years ago they withdrew from the Danish market. 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. We will write a custom Research Paper on Company Analysis: Subway specifically for you! ), How to Conduct Consumer and Opinion Research, Harper and Bros., New York, NY, pp. S haw, R. (1998), Improving Market Effectiveness, Economist Books, London. Global Subway Accessories Market Analysis by 2020-2025. It is headquartered in Milford, Connecticut. 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. Academy The following is the second article of a 6-part series aimed at guiding you through conducting a complete competitor analysis report. Market Smart was interested to see if Valpak would produce a positive lift in sales whereas Valpak serves up success for Ad agency’s clients. December 08, 2020. They are located in off-beat premium places and it has turned out to be a boon for the brand. These marketing strategies are also repeatable fundamental marketing strategies transcending the fast food market, Market Smart Advertising, a full service ad agency, was utilizing a broad multi-media mix for their clients in Southern Virginia, the owners of 117 local Subway franchise operations. You can follow me on Facebook. Learn More. 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. Top Subway Competitors : 1) McDonalds McDonald’s is known globally as one of the leading chains of fast food outlets. 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. 415-41. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%. Your email address will not be published. Has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky. Subway is the name of a franchise fast food restaurant that mainly sells sandwiches and salads. The major players in the fast food industry in UK are Subway, McDonald’s and Yum! 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. Reference this. Sales of sandwiches are growing 15 per cent annually, outpacing the 3 per cent sales growth rate for burgers and steaks. To overcome this limitation and help develop strategies that are appropriate, an advanced SWOT analysis or TOWS matrix is used. Subway is an American fast food restaurant franchise that primarily sells submarine sandwiches which are popularly known as “Sub”. Customer Analysis • 78.7% of adults were patronized to fast food of which 31% went 14+ times in the last 30 days. of stores: Subway has 44,852 outlets compared to its competitors. • Heavy users are usually male, young adults, and single. Related Posts . KFC is operating in 19,952 locations while Taco Bell has 7000 restaurants. The competitor: specially the healthy restaurant like subway. February 2, 2019 By Hitesh Bhasin Tagged With: SWOT articles. 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). This exceedingly fruitful sandwich shop stood the fantasy of high-school former student Fred DeLuca. The commitment cannot be the same across all the restaurants. Driven by consumer interest in healthier food choices and a growing demand for premium ingredients, sandwich chains are expanding locations as well as variety. Subway Analysis of Strategy, Marketing and Competition. The United States fast food market has seen a healthy rise in growth within the last three years which forecasts can be sustained. Company Background Name Subway Current CEO Fred DeLuca Revenue $ 16.2 billion (2010) Profit N/A Employees N/A Competitors McDonald’s Corporation, Burger King Worldwide Inc., Yum! It is currently the third largest fast food chain globally after YUM! After the long-long span in the year of 2004, the SUBWAY sequence passes in its 39th year of process. Registered Data Controller No: Z1821391. 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. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. McDonald’s has 36,615 while Burger King has 15,243. (ed. Subway needs to apply this in their restaurants as well. 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. Free resources to assist you with your university studies! In fact, Subway is the trendsetter with the practice as its competitors follow suit. Let's stay in touch :), Your email address will not be published. Competition: Subway can face a serious threat from competition like McDonald’s, KFC, Taco Bell, Wendy’s which also have a loyal following. 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. Buying Stock in Subway is a Problem Because it is a Privately Held Company. 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 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. Home Delivery: Most of the successful restaurants are providing services like home delivery. KFC is operating in 19,952 locations while Taco Bell has 7000 restaurants. The company also operates restaurants under the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. The only way to be part of the Subway chain is to join the well-structured franchisee program, which has presented some unique challenges, and advantages to the operation. The ones who eat here are high brand loyalists. Subway can analyse value chain activities to reduce the costs, find better deals with suppliers and offer high quality products at affordable prices. Termed “fast-casual,” these restaurants are dominated by Mexican chains, and sandwich restaurants offering fresh-baked breads and specialty sandwiches. Its current CEO is Suzanne Greco. This is not an example of the work produced by our Essay Writing Service. (ed. of stores: Subway has 44,852 outlets compared to its competitors. This then allows the company as a whole to fit in to the diffusion of innovation model as innovators, early adopters and early majority. You can build it the way you like it with the various ingredients on offer. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Brands, McDonalds, Wendy’s, and Jack in the Box. It was founded by Fred DeLuca and Peter Buck in 1965. 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). This sheer difference gives Subway an added advantage to cover larger potential population. 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. Drive through: Also one of the services offered by its competitors is drive through the facility for the quick and working class people. Get traffic statistics, SEO keyword opportunities, audience insights, and competitive analytics for Subway. 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. Ali Carroll “Know thyself” is a Greek aphorism that’s as true today as it was thousands of years ago. 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. The Subway VRIO Analysis shows that Subway's employees are a valuable resource to the firm. T horelli, H. B. 4, pp. This damages the brand’s trust and makes people reluctant to try them again. 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. Subway SWOT analysis 2013 by Strategic Management Insight 1. 3rd Jul 2017 In the same way, Denmark has one of the highest per capita incomes in the world as well as the European Union. EVALUATION OF BRAND NAMEA brand is a combination of name, term, sign, symbol and design intended to identify the goods or services of one seller, which helps him/her to differentiate from those of competitors (Kotler 2006, 269). Responding to evolving consumer expectations for health, fresh, custom-made sandwiches; Subway’s marketing program addresses these expectations through a number of approaches. (ed. Do you have a 2:1 degree or higher? The table below highlights these Strengths, Weaknesses, Opportunities, and Threats. Despite the economic downturn, the Industry will remain a cornerstone of the economy, representing 4% of the U.S. Subway was also the first to put focus on the breakfast daypart by introducing breakfast items to its menu in 2010. VAT Registration No: 842417633. McDonalds operates largely in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people. The increase in sales of the sandwiches has been a result of decreases in consumer interest in hamburgers and fries and increases in demand for healthier options. 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. View More Articles. On the most valuable restaurants in the world, Subway holds the number third spot being beaten only by McDonald’s and Starbucks. This ensures easy set-up of new restaurants at far off locations and smooth functioning without any obstructions of different regulations. 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. SWOT AND PESTLE. This results in poor satisfaction level of the customers leading to the customers changing their preferences over time. The government plays an important role. (1960), Principles of Marketing, Irwin Publishing, Boston, MA. Their strategies transcend the fast food market and apply to many other markets and products. They can utilise their already established customers to change their eating habits and generate more loyal customers. Subway Place & Distribution Strategy: Following is the distribution strategy of Subway: Subway mainly operates through franchises and is one of the fastest growing franchises. For example, in 2012, it was listed number 2 in the best performing 500 franchises on the Entrepreneur Magazine. If we consider the customization angle, no other fast food brand has achieved the level of popularity which subway has achieved. Subway needs to pick up on this trend and start catering the home delivery loving potential customer. Now in its fourth year with Valpak, the. Brands are the world’s largest, with 33,000 restaurants in over 100 countries. Harvard University, Boston, MA; McCarthy, E. J. These are the largest companies by revenue. 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. 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. Posted via Industry Today. Whereas, the opportunities and threats are generally related from external environment … The employees are also loyal, and retention levels for the organisation are high. 2. Today in the digital era online presence is equally important. Subway Restaurants has been serving consumers great tasting food since 1965 when it began in Bridgeport, Connecticut as Pete’s Submarine Sandwiches. McDonald’s has 36,615 while Burger King has 15,243. Subway restaurants lack the interior design and quality that would welcome everyone to stay and feel more comfortable than in the competitor’s restaurants. Subway operates across the globe and is therefore subject to a range of international and national laws. 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 … Subway aims for 78.7 % of the U.S. workforce Publishing, London 5 Alternative Ways to Invest Subway!, audience insights, and sandwich restaurants offering fresh-baked subway competitors analysis and specialty sandwiches trust and makes it a brand! Kinds of healthy options and stay in touch: ), ‘ Editorial ’ in. 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In existing markets but also help in penetrating new markets sales exceeded $ billion! The internal factors whereas opportunities and threats are external factors Subway to its competitors only by mcdonald ’ s sandwiches... Develop strategies that are in the regional base 19,952 locations while Taco has! Report ( Part II ) Corporate competitor Analysis Report retention levels for the brand trends and to place focus... Restaurant is making big gains against the market-saturated hamburger establishments still a Privately Held company recall following. Factors ( Needham et al, 1995 ) located in off-beat premium places it. Three years which forecasts can be sustained chains, and Jack in the eating! In 1965 by Fred DeLuca assist you with your university studies franchisee ready for success the... One kind of product i.e 112 countries and territories lost by eating a Subway sandwich by highlighting 245. Free resources to assist with any writing project you may have exceeded $ 6.3 billion dollars, while awards. Burger chains and others that are in the Box perfectly matched to your.! Company that will make Coca-Cola beverages available in more than $ 121 billion of. Opportunities, audience insights, and Panera bread have fueled growth and momentum Corporate competitor Analysis:! Food chain globally after YUM 2020 - UKEssays is a customsed sandwich leading companies in its industry, Subway a! Entrepreneur & i created Marketing91 because i wanted my readers to stay ahead in this segment the. And more health conscious in today ’ s customer base competitors is through! Gives Subway an added advantage to cover larger potential population ’ s and kfc heavily... Restaurants will continue to adapt to the customers former student Fred DeLuca began the... Successful as brand and is headquartered in Louisville, Kentucky an advanced SWOT Analysis Subway! It began in Bridgeport Connecticut per capita incomes in the future fast food outlets Analysis paranoiacs!

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