SWOT analysis of Subway analyses the brand/company with its strengths, weaknesses, opportunities & threats. This fall has been attributed to its rapid growth and changing customer tastes. Show More. In Subway SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. It is a handy technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Subway is facing in its current business environment. Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales. The Subway is one of the leading firms in its industry. Swot Analysis Of Subway. Subway Market Research, 114 pages, 7 appendices Saimaa University of Applied Sciences, Lappeenranta Degree Programme in Business Administration Corporate and Financial Law Bachelor‟s Thesis 2010 Instructor: Sari Jokimies Manager of Degree Program The main goal of this thesis is to find out whether Danish entrepreneurs can become successful in the Danish market as Subway franchisees. Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Subway. Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model. As one of the leading companies in its industry, Subway has numerous strengths that help it to thrive in the market place. Here are the weaknesses in the Subway SWOT Analysis: 2. It has been reviewed & published by the MBA Skool Team. SWOT is a static assessment - analysis of status quo with few prospective changes. Subway primarily sells submarine sandwiches and salads. Weaknesses Outdated look and interior decoration in their franchise outlets are one of the biggest weaknesses for SUBWAY. Government green drive also opens an opportunity for procurement of Subway products by the state as well as federal government contractors. SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. Subway Subway Offerings Strengths Weaknesses Product Subway Melt Meatball Marinara Tuna Sandwich This is a very popular sandwich and by observing their operations, a lot of their customers order this particular sandwich The sandwich actually tastes good. In order to evaluate the market, Zodiac Sandwich has maintained effective competitors’ analysis, customers’ analysis, SWOT analysis and PESTEL analysis. Political factors affecting Subway: Food and safety guidelines. The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top Subway competitors and includes Subway target market, segmentation, positioning & Unique Selling Proposition (USP). Topics: Sri Lanka, Fast food, Hamburger Pages: 8 (1764 words) Published: March 29, 2017. Subway SWOT analysis 2013; Strengths Weaknesses; Great degree of subs customization; Largest fast food restaurant chain in the world by the number of outlets; Marketing and promotional strategies; Choice of healthier meals; Partnerships with Britain and American Heart Associations; All restaurants are owned by franchisees; Low startup costs; Weaknesses SWOT ANALYSIS ON Subway : Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs), salads, and personal pizzas. 2766 Words 12 Pages. Weakness are the areas where Subway can improve upon. Automation of activities brought consistency of quality to Subway products and has enabled the company to scale up and scale down based on the demand conditions in the market. 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). It is owned and operated by Doctor's Associates, Inc. (DAI). All rights reserved. The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term. One of the reason why the days inventory is high compare to its competitors is that Subway is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. The PESTEL analysis will examine the political, economic, socio-cultural, technological, legal and environmental factors of Subway's external environment (Johnson et al 2014; Angwin et al 2011). Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Subway an opportunity to enter a new emerging market. Running Head: SWOT ANALYSIS OF SUBWAY 3 Subway is a fast food restaurant, originated in America, that focuses mainly on selling submarine sandwiches known as “subs” and salads[ CITATION Bha19 \l 2057 ]. Strengths High level of customisation as customers can pick and choose the filling of their sub. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Then I will discuss subway marketing strategies using Ansoff metrics and Porter' s generic strategies while considering their marketing mix and finally will go for recent and future changes. Scale your grade expectation bar HIGH! This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically. The Porter’s Five Forces model can be used to analyse the industry in which Subway operates, in terms of attractiveness through inherent profit potential. And it is one of their popular seasonal offerings. A healthier, fresher alternative to conventional fast food. It is currently the fast food chain with the most amount of stores in the world with 42,999 outlets spreading over 108 countries (SUBWAY , 2014). This method is called Weighted SWOT analysis. Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Subway is also renowned for being the almost only provider of healthy fast food (L.Harris et al., 2010). They have become one of the leading submarine sandwich franchise based in the United States and has over 20,532 restaurants in more than 72 countries. PESTLE Analysis of Subway analyses the brand on its business tactics. Subway uses a mix of demographic and geographical segmentation to make its products more appealing to the targeted group of customers.The largest single-brand restaurant chain uses undifferentiated targeting strategy to design the offerings and services as per the choice of the customers.It uses value-based positioning strategy to create a long-lasting brand image in the mind of the potential consumers. If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template. Based on Fern Fort University extensive research – some of the strengths of Subway are –. Competitor SWOT Analysis 1. Description of SUBWAY SUBWAY is a fast food chain own by Doctor’s Associates INC. SWOT Analysis of Subway . It provided an evaluation window but not an implementation plan based on strategic competitiveness of Subway. The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Subway to increase its profitability. 5. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. Subway is considered a fast food restaurant. Offer healthy subs sandwich that are preferred and much better as compared to food items offered by other fast-food chains like McDonald’s. They are just awesome. The profitability ratio and Net Contribution % of Subway are below the industry average. Imitation of the counterfeit and low quality product is also a threat to Subway’s product especially in the emerging markets and low income markets. Quizzes test your expertise in business and Skill tests evaluate your management traits. It leads to a 2X2 matrix – also called SWOT Matrix. Swot Analysis Of Subway . Below are the Strengths in the SWOT Analysis of Subway: 1.Worldwide brand recognition and high brand loyalty. Subway is one of the leading brands in the food & beverages sector. This PESTLE analysis of Subway explores how the six external factors influence the company’s success. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. Strong distribution network – Over the years Subway has built a reliable distribution network that can reach majority of its potential market. The content on MBA Skool has been created for educational & academic purpose only. This paper aims to focus on the SWOT Analysis of the company. Customers mainly takeaway their meals as there isn’t much SUBWAY’s franchisee provides proper environment dine-in services in the restaurant. Buy Professional PPT templates to impress your boss. Likewise, the restaurant uses cash register data to collect and determine royalty fees from the franchisees. Introduction. 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. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning. SWOT analysis is a vital strategic planning tool that can be used by Subway managers to do a situational analysis of the company . STEP 4: SWOT Analysis of the Subway HBR Case Solution: Pest analysis. Marketing mix SWOT analysis Mission- “Not Available”Vision- “To become no. Without advanced technology, it is not possible to offer the royalty card to customers. SWOT Analysis:Strengths Subway is one of the most well-known fast food chain restaurants in the world. 1. They operate the organization under a stable culture. Let’s start with the political factors. The analysed Subway company is one of the most successful organisations in this segment on the global scale (Harwell, 2015). A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. Financial planning is not done properly and efficiently. In 90 different countries, Subway has 32,004 restaurants with over 150,000 employees across the world. Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Subway   in those markets. Subway faces threats from other fast food industry players and this has been seen by its fall from being the world's second largest fast food retailer to third behind Starbucks, despite Subway's having more outlets (Peterson 2016). Swot Analysis Of Subway 993 Words | 4 Pages. This lists down the Strengths-Opportunities (SO) strategies that involve using strengths to take advantage … 8 Keeping business excellence and team capabilities a priority subway must develop a multi-year plan. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. Amazing Business Data Maps. This is one of... SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. Engage students in your virtual … There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. In order to segregate the target marker STP analysis has also been conducted for Zodiac Sandwich. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. It has its own loyalty card ‘Subcard’ to encourage customers to make repeat purchases. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. Following the restrictions of the health and safety regulations is the … Blog. Franchise management on a global level is a challenge. : MIT Press, 1962). It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. Send your data or let us do the research. O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975); L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970), R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986). You can email us to get an example document of Weighted SWOT analysis. And, like any business in the food industry, Subway must abide by political factors. This investment has opened new sales channel for Subway. The new technology provides an opportunity to Subway to practices differentiated pricing strategy in the new market. Subway is very active in social media to promote its image. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the Subway to develop four types of strategies: The main purpose of SWOT matrix is to identify the strategies that an organization can use to exploit external opportunities, counter threats, and build on & protect Subway strengths, and eradicate its weaknesses. . Subway has been targeting mostly foreigners when it was started in 2003. Subway should gain insight into the strengths and weaknesses by SWOT analysis and should capture opportunities to grow [ CITATION Rec \l 1033 ]. Strong Free Cash Flow – Subway has strong free cash flows that provide resources in the hand of the company to expand into new projects. SWOT analysis (S)trengths. Subway maintains its prominent position in market by carefully analyzing and reviewing the SWOT analysis. Five strategies to maximize your sales kickoff; Jan. 26, 2021. New customers from online channel – Over the past few years the company has invested vast sum of money into the online platform. Subway targets consumers ranging from 18 – 45 Years old, where business workers are their main consumers. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present. Prioritize projects, manage issues, resolve conflicts, and work to satisfy its customers. This is one of the. Swot Analysis Of Subway 953 Words | 4 Pages. Nobody get fired for buying our Business Reports Templates. number one in the sub sandwich category by ‘Entrepreneur’ magazine held consistently throughout the years. M. E. Porter, Competitive Strategy(New York: Free Press, 1980), A. D. Chandler, Strategy and Structure (Cambridge, Mass. 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. Subway is a franchise that has restaurants all over the United States and in several other countries. Fern Fort University. 6. Franchisee staff training is structured, brief and designed to assure rapid start-up for new employees. Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. 2. Superb Performance in New Markets – Subway has built expertise at entering new markets and making success of them. Swot Analysis Subway 1296 Words | 6 Pages. This lack of choice can give a new competitor a foothold in the market. Where they targeted for 80% foreigners and 20% local consumers. There are gaps in the product range sold by the company. In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. First I use small marketing environment audit using SWOT analysis, P.E.S.T analysis and five forces analysis to discuss SUBWAY marketing environment. This can impact the long term growth of Subway. Subway has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Order custom Harvard Business Case Study Analysis & Solution. Certain capabilities or factors of an organization can be both a strength and weakness at the same time. Feb. 3, 2021. Subway Swot Analysis. Following are the Opportunities in Subway SWOT Analysis: 3. Strengths of Subway Providing Customized Meals: When it comes to have a healthier or any other sort of meal, only Subway pops up in mind that’s why Subway has created a unique market place in a market. SWOT analysis of McDonald's (5 Key Strengths in 2020) Ovidijus Jurevicius | January 10, 2020 This McDonald’s SWOT analysis reveals how the most successful fast-food chain company of all time uses its competitive advantages to continue dominating fast-food industry. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. Limitations of SWOT Analysis for Subway Certain capabilities or factors of an organization can be both a strength and weakness at the same time. Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Subway managers can focus on the most critical factors and discount the non-important one. Lot of varieties in vegetarian as well as non vegetarian meals, People willing to have a hygienic and delicious non conventional meal at a restaurant, Children and youth from middle and upper class. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance. Emerging markets and expansion abroad. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Swot Analysis Of Subway. 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). Successful track record of developing new products – product innovation. Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of Subway. SWOT Analysis is a proven management framework which enables a brand like Subway to benchmark its business & performance as compared to the competitors and industry. This is because when it was first start, only foreigners know about the brand Subway. The SWOT Analysis framework facilitates an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. Subway Restaurants is the famous submarine sandwich franchise based in the United States and all over the world having companies in more than seventy two countries enclose over 20,532 restaurants in this planet. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. To overcome this limitation and help develop strategies that are appropriate, an advanced SWOT analysis or TOWS matrix is used. 1. The brand names and other brand information used in the BrandGuide section are properties of their respective companies. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. Liability laws in different countries are different and Subway may be exposed to various liability claims given change in policies in those markets. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. Evaluation of Subway's Branding and its SWOT analysis. Menu reflects demand for fresh, healthy and fast food. To analyze the Global Subway Vehicle Market, the analysis methods used are SWOT analysis and PESTEL analysis. High level of customer satisfaction – the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers. Off course, the quantity of a sub sandwich is big too so in general, it is at par with other competitors. However, the low calorie content of subway sandwiches makes it deserving of its price. Browse marketing analysis of more brands and companies similar to Subway. Starting just $19. Organization’s core competencies can be a success in similar other products field. The threats in the SWOT Analysis of Subway are as mentioned: 1.Threat from other eating joints/restaurants. The brand strives to conduct business in a way that creates profit for franchisees while minimizing the impact the business has on the environment and improving the lives of SUBWAY@ customers, employees, franchisees,vendors and communities world-wide. Topics: Subway, Fast food, Submarine sandwich Pages: 4 (1340 words) Published: December 30, 2008. New trends in the consumer behavior can open up new market for the Subway . MBA Skool is a Knowledge Resource for Management Students & Professionals. This article has been researched & authored by the Content & Research Team. The BrandGuide section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world. Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. Subway is the second largest It is owned and operated by Doctor’s Associates. We make the greatest data maps. 7 benefits of working from home; Jan. 26, 2021. The marketing of the products left a lot to be desired. The information analysed using the model can be used by strategic planners for Subway to make strategic decisions. Subway PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Abstract One of my first jobs a young adult was as a store manager for a local Subway restaurant. Subway has always maintained better quality of food products and hence kept their prices a bit higher to match the product quality. Introduction of Subway Subway is an international fast food chain specializing in the production of sandwiches or subs. https://www.mbaskool.com/brandguide/food-and-beverages/588-subway.html SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the organization such as – marketing, finance, operations, management information systems and strategic planning.
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