SWOT ANALYSIS ON Subway -
November 25th, 2010
Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs), salads, and personal pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with approximately 33,556 restaurants in 92 countries/territories as of October 1, 2010. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (35,000 locations).
Subway's main operations office is in Milford, Connecticut, and five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands. Australia and New Zealand are supported from Brisbane, Australia; the Middle Eastern locations are supported from offices located in Beirut, Lebanon; the Asian locations from Singapore; India and the Latin America support center is in Miami, Florida. In the UK and Ireland the company hopes to expand to 2,010 restaurants by some time in 2010.
Subway Restaurants is one of the leading submarine sandwich franchise based in the United States and having presence in more than seventy two countries having over 20,532 restaurants all over the world.
The company has been using some non traditional channels for making its network strong and the growth rate of the company has also been increasing year after year.
Subway has well established itself as a brand in the fast food industry and having brand recognition all over the world. Due to its great strategies the company has become the leading franchise in the United States in a very short period of time. The company has even positioned itself in places like hospitals, churches, schools and popular retail stores like Home Depot and Wal-Mart. This makes the start up cost of franchises low.
Subway is known to be a company that offer healthy subs sandwich that are preferred and much better as compared to food items offered by other fast-food chains like Sonic Drive and McDonald’s. The company has partnered with the American Heart Association to add to its image further. The food menu of the Subway reflects the high demand of healthy and fresh food which is fast too.
The new decor of the company is another factor that gives a fresh feeling top the customers. Some of the recently introduced products reflect the healthy offering of the company.
The company also spend son the training of the Franchisee for its rapid start-up and success.
The marketing and promotional strategies adopted by the company are an example of the positive focus on demand, consumer preferences, trends, innovation and product leveraging. These further add to the strengths of the company.
The market share and the profits of the company that were due to sandwiches increased greatly as an effect to the decreased interest of the customer towards the chips and hamburgers due to increase awareness about healthy foods.
The decoration and look of the franchises is said to be old an outdated. Another problem with franchises is that the satisfaction level of the customers is not the same across franchises and also some franchises perform very poor.
Service commitment is not consistent from store to store. This can be said to be related to staff as there is not much motivation and the turnover rate of the employees is very high.
The company can invest more to expand its business in the international market and also make improvements in its decoration and look to encourage dine-in. By improving the customer service model the satisfaction for the customer can be increased and also the loyal customer base will increase.
The company can improve the relation inside and outside the organization by changing its policies a bit.
The company faces serious threats from some of the large fast food chains in the world which include Yum brands like Wendy’s, KFC, McDonalds etc. These restaurants are very old and have developed large loyal customer base over the years.
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