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Subway Case Analysis

1265 words - 6 pages

College of Business and Public Policy



CURRENT ANCHORAGE MARKET…………………………………………………………...7


Subway is the market leader in sandwich shops, and offers a healthier alternative to burgers and pizza for people looking to pick up food on the run. They specialize in making subs, wraps, salads, and pizzas. Subway is owned and operated by Doctor's Associates, Inc., and according to Forbes Magazine, is the largest single-restaurant chain globally with 40,043 locations in 102 countries around the world. 
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Among Subway’s strongest competitors are McDonald's, KFC, Wendy’s, and Dairy Queen.
Figure 1. Subway SWOT Analysis

Figure 1 represents Subway SWOT analysis (retrieved from, 09/08/2013)
One of the main advantages that Subway has over these other restaurants is that they offer much healthier food. People are not going to find fries and greasy burgers at Subway, instead they will try to make a better choice with promotions such as subs with 6 grams of fat or less, and eventually they will feel good about eating out while still eating healthy.
Subway beat McDonalds at some point in terms of having the most stores around the globe. Another competitive advantage is Subway allows its franchisees to choose their own food suppliers, so that the store can access the best and freshest ingredients. In addition, customers can see the Subway team making their food.

Nowadays, many people have very busy schedules and it became a luxury to prepare food at home every day. People are so occupied with work, school, and family activities, that they simply do not have the time to prepare three meals every day. Fast food restaurants are a great help when it comes to people on the run.
Initially, Subway’s target customer is a health-conscious consumer, though they also try to go beyond in order to increase the company’s share of the fast food market. Subway is constantly working on expanding its product mix to attract a wider range of consumers. With the $5 foot long pricing, the brand has been able to capture a larger market share of people who see it as an affordable option. “For some time, the media spotlight on obesity, diabetes, and heart disease, and the importance of making better meal choices away from home, has driven growth in the range and number of lower calorie/better nutrition dishes being offered in all types of restaurants. These study results show just how strongly Subway’s positioning around fast and healthy meal choices is resonating with consumers,” said Mary Bouchard, Vice President of consumer goods, retail and restaurant research at Harris Interactive.
A rapid rise in obesity, lead to a marketing strategy that emphasizes the ability of Subway to offer fresh and low-fat options. At the same time, Subway has to be as fast in making a sandwich as any other high-fat menu in making burgers and fries.
People can find subs that are hot, toasted, and cold; as well as salads and wraps on the Subway menu. In addition, Subway offers soda, chips, and cookies to satisfy their customer’s needs, and to make their sandwiches a full meal. Subway’s products do not require heavy cooking processes, eliminating the need for additional frying equipment, which also reduces labor costs. Subway manages their business in a very simple manner, optimizing their menu to only the basics,...

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