Swot of Subway Sandwich

Case analysis of Subway Sandwich

Introduction:

In the summer of 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. 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). Unlike many other restaurants these days, Subway is still a privately held company, that is not traded on the stock exchange. 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.

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. Subways fast food varies from other fast food chains in that it is a more healthy option that is made to each persons specifications. Subway has been careful not to alienate any consumer's preference by offering options that include regular sub sandwiches, lowfat options, Atkins friendly wraps, salads, snacks, and desserts. Subway is happy to advertise that with all their sandwich features, there is over 2 million different sandwich options that are available to their consumers (www.subway.com).

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. Subway currently competes with Burger King, McDonald's, Wendy's, Taco Bell, KFC, Blimpie, DÐ"Ѓngelo'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. The one thing that has really benefited Subway Restaurant in the last few years is the trend of shorter lunch breaks, and employee's choosing to eat at their desks as oppose to going out for a traditional sit down lunch. Subway can easily be taken on the go, and that allows customers to check off other items on their to do list, while enjoying a guilt free customized lunch.

While there are many other competitors either securely in the marketplace, or currently entering the marketplace, we feel that Subway can continue to own a strong segment of the non-burger fast food market. While sales have begun to flatten in the last few years, we have determined some areas that Subway can concentrate on to help bolster their position in the marketplace, to include a stronger focus on quality.

SWOT Analysis

Strengths:

Ð'* Located in 71 countries

Ð'* Offer special financing to minority groups to help start stores

Ð'* In 2000 Subway owned 59.9 percent of the sandwich market share (www.subway.com)

Ð'* Franchises benefit from national advertising

Ð'* Wide variety of sandwich offerings. According to www.subway.com, there are over two million combinations of Sandwiches.

Ð'* Widely known through out the country (they make 1,900 sandwiches every 60,000 www.subway.com).

Ð'* Subway does not have to go out and find new markets to enter into, people seek Subway out. Subway is in foreign countries not because they recognized a need, but because there was someone interested in starting a chain store in that location.

Ð'* Offers subs and salads, and all breads are made daily. The idea of fresh is very enticing to consumers and they can choose their vegetables while they watch their sandwich being made.

Ð'* Great health success with the Jared campaign (lost 245 lbs.). Jared now travels the country as a promotional speaker

Ð'* Adapt their menu's to accommodate religious beliefs in other countries

Ð'* International travelers know they are going to get the same menu items no matter what part of the world they are in.

Ð'* Brand recognition

Ð'* Simple kitchen arrangement in that the only