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Submitted by lynn825 on May 5, 2007
Category: Business
Words: 2710 | Pages: 11
Views: 422
Popularity Rank: 20,505
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Subway
Introduction
Subway is the largest restaurant franchise in the United States. The Subway chain has been established for about 38 years and it has reached number one in increased percent sales and consumer awareness over time. Subway’s accomplishments are mainly due to its brand awareness, product image and diversity in the fast food industry. However, in the presence of strong competitive pressure from its rivals, Subway has to make some strategic changes in order to prosper in the market place. This paper is aimed to give a thorough situational and SWOT analysis based on the facts presented in the case as well as internet updates. Additionally, some recommendations on Subway’s marketing strategies that are specifically on product, price, promotion and competition will also be discussed.
Situational Analysis
History
In 1965 Fred DeLuca and his partner Dr. Peter Buck, founded Pete’s Super Submarines restaurant in Bridgeport Connecticut, mainly with the intent of making enough money to fund Fred’s college education (History, 2003 para. 8). With the success of the first operation, came visions of expansion and growth. With that vision, Fred DeLuca and his partner Peter Buck began what would be later known as one of the top franchises in North America. The duo changed the name to Subway and started to franchise in 1974. Since then Subway has experienced steady growth over the years. It has topped Entrepreneur Magazines Franchise 500 list for top franchises for 11 years now. Subway strives to offer a healthy alternative to fast food restaurants, boasting a count of 20023 restaurants in 73 countries (FAQS, 2003 para.1), making it the undisputed market leader for sub shops.
Review of Organization and Product
Subway is a franchise specializing in the submarine sandwich market segment with emphasis on providing its customers healthy choices, fresh ingredients, and value. Subway provides...
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