Business Development Plan- Subway

By

EXECUTIVE SUMMARY

The company known as Subway started their operations around 43 years ago during the summers of 1965. The idea was the brainchild of Fred Deluca who was 17 years old, a young man. At the moment, Subway is currently the market leader in the sandwich food items who have offered a much healthier alternative as compare to traditional fast food businesses. The annual sales of Subway has exceeded from the annual sales figure of $ 6.3 billion, which made them to win several awards and accolades over the last 43 years. There are 28,000 units of Subway located in different parts of the world as it has been able to attract a lot of investment because of their rapid operations. Subway has given a tough fight to the KFC and Burger King. The company recently adopted some initiatives that further attracted customers towards its products. In this way, the market share of the company also increased in the fast food market. The marketing program of Subway addressed health; fresh custom made sandwiches that fulfilled the expectations of the consumers because of the several types of approaches followed by the organization. The concept of serving fresh made sandwiches on fresh baked bread proved to be a very good strategy in Europe. The customers have certainly made a right response to the high level of service that Subway restaurants have provided to the public. They have gained a lot of popularity over the past several years among those customers who prefer to remain healthy. The strategy of Subway having low initial investment gives them a competitive advantage in any location. Subway does not even require a huge size for their franchises because their operational process is simple and easy. Subway is aiming for huge operations in the European Market in order to increase the potential for earning maximum revenues from their different ventures. Therefore, this is the overall view of the Subway's operations in future.

TABLE OF CONTENTS

EXECUTIVE SUMMARYII

CHAPTER 1: INTRODUCTION1

1.1 Rationale for the business idea1

1.2 Scenario Chosen1

1.3 Aims and Objectives of the work2

1.4 Structure of the work3

1.5 Logo of the Business3

CHAPTER 2: BUSINESS CONCEPT4

2.1 Brief Description of the business idea4

2.2 Mission and Vision of the Business4

2.3 Issues related to Concerned Product5

2.4 Positioning of the Business9

2.5 Scale and Growth Anticipation10

CHAPTER 3: FEASIBILITY12

3.1 Market Research12

3.2 Product/Service Feasibility22

3.3 Industry/Market Feasibility26

3.4 Organisational Feasibility31

3.5 Financial Feasibility33

3.6 Resource requirement evaluation36

CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL38

4.1 Strategic Analysis of the business idea38

4.2 SWOT Analysis of Subway39

4.3 Sources of Competitive Advantage and Sustainability41

4.4 Selection of strategies for success41

4.5 Development of Appropriate Business Model43

CHAPTER 5: BUSINESS PLAN44

5.1 Overall Assessment of the Business Development Proposal44

5.2 Business Plan Schedule45

5.3 Discussion of critical/success failures48

REFERENCES49

APPENDIX52

CHAPTER 1: INTRODUCTION



1.1 Rationale for the business idea

The future expansion strategy of Subway is top open around 1600 locations in UK in the next two years. However, in this study, there is a need to focus on the existing marketing strategy of Subway by having a detailed discussion about the SWOT Analysis, marketing mix, branding ...