SWOT Analysis of Subway: Strengths: Strong market position: Second largest restaurant operator. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Promotion runs from 00:01am to 11:59pm (GMT/UTC) on the 30th November 2020. Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Subway   in those markets. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Subway Swot Analysis 584 292 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. This method is called Weighted SWOT analysis. 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. In the USA, Subway controls 60% of the quick service sandwich market in the US and has a strong social media following with more than 25million Facebook followers (Forbes 2017). Subway has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Subway offers customers many different kinds of fresh submarine sandwiches also called “subs”. This is one of the. Weaknesses. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. Download paper 41 . 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 804 Words | 4 Pages. Amazing Business Data Maps. According to former analysis, SUBWAY’s main purpose is to attract more customers, Introduction The Subway is an American fast food restaurant which core selling product is submarine sandwich. The Subway is one of the leading firms in its industry. Slogan “Eat Fresh” tells that Subway chain uses only freshly baked bread and fresh ingredients. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance. This makes it easier for those … 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. 993 Words4 Pages. This certification ensures that suppliers are meeting the quality standards specified by Subway and ensures that franchisees are supplying the appropriate standard required by Subway (Subway 2017d). Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. An American company, Subway was founded in 1965 and has seen grown to having stores in over 44,000 locations in 113 countries around the world making it the world's largest submarine sandwich chain (Subway 2017a; IBIS World 2017). 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. Fern Fort University. SWOT analysis of Subway can lead the company towards making effective and wise business strategies. Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Subway. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. To qualify for the discount, you must have paid at least 50% of your order cost by 23:59 on Wednesday 3rd of December 2020 (UTC/GMT). SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. VAT Registration No: 842417633. From packaging to distribution, Subway and their workers handle the responsibility of their food products. Analysis, Pages 6 (1319 words) Views 457. One of … This fall has been attributed to its rapid growth and changing customer tastes. Subway's strategy includes finding busy locations, keeping costs low, offering great customer service and operating a franchise system (Subway 2017a; 2017b). If you are looking for additional support and resources related to SWOT Analysis, please find more SWOT Analysis resources below: To export a reference to this article please select a referencing stye below: Our academic writing and marking services can help you! Great degree of sub customization. : MIT Press, 1962). SWOT AND PESTLE. Cannot be used in conjunction with other promotional codes. 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. SWOT analysis is a vital strategic planning tool that can be used by Subway managers to do a situational analysis of the company . The rapid growth of franchises has also seen some stores start to look tired which may discourage consumers from using the stores. 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. This investment has opened new sales channel for Subway. Implementation of SWOT Analysis on McDonalds, KFC and Subway . Weakness: Services are not consistent from store to store High employee turnover 19. Subway SWOT Analysis | Business Teacher Introduction. 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. Study for free with our range of university lectures! 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. SWOT analysis is a relatively simple tool for understanding a firm’s situation, which is inherently complex. All work is written to order. No plagiarism, guaranteed! 2nd Nov 2020 All rights reserved. The first submarine sandwich shop was opened in Connecticut, The USA in 1965 by Fred DeLuca and Dr. Peter Buck (Subway.com. Learning from Technomic’s Top 500 Chain Restaurant Report, Subway has . The opportunities for Subway include improving the customer experience by offering higher levels of convenience through a delivery service, online ordering and payment system and greater variety in the menu choices. Based on Fern Fort University extensive research – some of the strengths of Subway are –. 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. We're here to answer any questions you have about our services. Do you have a 2:1 degree or higher in business or a related subject? Malaysia main rail system was mange by Kereta Api Tanah Melayu Berhad since the 1940’s, the railway company manage a total of 1,699km of tracks in the Peninsular Malaysia. The size and number of locations of Subway give it a considerable advantage in terms of its visibility and access to its customers. 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. Furthermore, Subway should use the feedback from its customers to improve the business model as other competitors have been able to financially benefit from these changing consumer tastes (Brandau 2015). A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. What is SWOT analysis? Customers always decide how they want their sandwiches to be served. We make the greatest data maps. Subway stands apart as one of the leading Quick Service Restaurants. It also aims at establishing itself as a fresh and healthy sandwich maker in the fast food industry. Nobody get fired for buying our Business Reports Templates. Subway is a franchise that has restaurants all over the United States and in several other countries. The above SWOT analysis of SUBWAY demonstrates what the restaurant’s strengths and weaknesses are and what opportunities and threats are facing it. 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. Finally, and perhaps most important, the results of SWOT analysis should not be overemphasized. It also involves estimating the probability of an event occurring in the external environment. 2015). BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. Limitations of SWOT Analysis for Subway Certain capabilities or factors of an organization can be both a strength and weakness at the same time. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. 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 Flax Products Market (covid-19 analysis) SWOT analysis, key indicators, forecast to 2025 An analysis report published by IndustryGrowthInsights (IGI) is an in-depth study and detailed information regarding the market size, market performance and market dynamics of the Fast Food. Superb Performance in New Markets – Subway has built expertise at entering new markets and making success of them. SWOT is a static assessment - analysis of status quo with few prospective changes. 2015). Subway PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Subway‟s advertising is based on freshness. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. M. E. Porter, Competitive Strategy(New York: Free Press, 1980), A. D. Chandler, Strategy and Structure (Cambridge, Mass. Free resources to assist you with your business studies! Categories Fast Food, Food, Swot Analysis. Subway Porter’s Five Forces Analysis. Disclaimer: This work was produced by one of our expert writers, as a learning aid to help you with your studies. Liability laws in different countries are different and Subway may be exposed to various liability claims given change in policies in those markets. Following the restrictions of the health and safety regulations is the company’s top priority. 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. As, the demand unwavering and so the challenges opportunities and threats are borne every coming day. Unique from other fast food restaurants. Evaluation of Subway's Branding and its SWOT analysis. They are just awesome. 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. Swot Analysis For the UK, this sourcing is overseen by the European Independent Purchasing Company Ltd which helps support the Subway franchisees by providing a supply chain for both the ingredients, but also the store equipment and services (Subway 2017d). SWOT There are gaps in the product range sold by the company. Weakness are the areas where Subway can improve upon. Successful track record of developing new products – product innovation. We hope the article has helped you explore SWOT analysis of Subway. 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. Copyright © 2003 - 2020 - BusinessTeacher.org is a trading name of All Answers Ltd, a company registered in England and Wales. Certain capabilities or factors of an organization can be both a strength and weakness at the same time. They operate the organization under a stable culture. Swot Analysis Of Subway. Registered Data Controller No: Z1821391. 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 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. Marketing mix SWOT analysis Mission- “Not Available”Vision- “To become no. ANALYSIS OF SUBWAY PRESENTED BY HIRA, SHAHWAR, NIMRA, AHMED, SAHAR, SARA Worth: $10.314 Factors: Eating healthy and obesity is also an opportunity for subway Co-Factors: It also provide the fresh and customized sandwich flavor away from the typical Junk food Sales: A subway restaurant, on average generates $422,000 in sales annually. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. 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. Financial planning is not done properly and efficiently. Government green drive also opens an opportunity for procurement of Subway products by the state as well as federal government contractors. 10MONDAY2020 can only be used on orders that are under 14 days delivery. The current economic recession is another threat for the company as it directly affects the consumption and spending power of the consumers. The new technology provides an opportunity to Subway to practices differentiated pricing strategy in the new market. *You can also browse our support articles here >, https://blogs.technomic.com/what-subways-sales-decline-says-about-the-restaurant-industry/, https://www.ibisworld.co.uk/market-research/takeaway-fast-food-restaurants.html/, http://uk.businessinsider.com/subway-sales-are-declining-2016-5?r=US&IR=T, http://www.subway.com/en-gb/aboutus/history, http://www.subway.com/en-gb/ownafranchise, https://subcard.subway.co.uk/cardholder/home_uk.html, http://www.subway.com/en-gb/aboutus/socialresponsibility/sustainablesourcing, Developing a Business or a Career in Business, Angwin, D, Cummings, S and Smith, C (2011), Brandau, M. (2015) 'What Subway's sales decline says about the industry' [online] Available from, Forbes (2017) 'Number 92 The World's most valuable brands - Subway' [online] Available from, IBIS World (2017) 'Takeaway and fast food restaurant in the UK: market research report' [online] Available from, Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regnér, P. (2014), Peterson, H. (2016) 'Subway is facing two problems that are wrecking its business' [online] Available from, Subway (2017a) 'The History of Subway' [online] Available from, Subway (2017b) 'Own a franchise' [online] Available from, Subway (2017c) 'SubCard' [online] Available from, Subway (2017d) 'Sustainable Sourcing' [online] Available from. Categories too the brand that is provides healthy food rapid growth of has. Capabilities or factors of an event occurring in the markets it operates in majority of visibility! 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