SUBWAY

Strategic Planning of SUBWAY



Strategic Planning of SUBWAY

Introduction:

SUBWAY - Eat Fresh

The SUBWAY was found by Fred DeLuca in the year 1965, in Connecticut, United States. Ever since then the company has expanded over 36,000 outlets in 100 different countries around the globe and it aims to expand furthermore into other and already existing horizons. SUBWAY in 2008, it was ranked 1st in the sandwich industry of Britain, and consequently was given the 1st rank in franchise opportunity by Entrepreneur magazine in 2009.

SUBWAY ® is currently the largest supplier of sandwiches in the world, and plays a key role in the development of the fast food industry. All SUBWAY ® restaurants are intended to provide a quality product made according to individual taste of each client. The sandwiches and salads are prepared with the client and the choice of accessories is free: crunchy vegetables, cheese, sauces and condiments.



Discussion

Current Market Situation

In the United Kingdom inflation rate is growing. People are looking for cheaper options and bargains to spend their money more efficiently. In such circumstances it creates a competition among different organizations in fast food industry such as Mc Donald's, KFC, and Pizza Hut etc. for their survival in market.

Why SUBWAY? Guarantee of success backed by more than 40 years experience in the market Fully consolidated business model with more than 36,000 locations in 100 countries Great brand recognition through millions of customers around the world Exclusive product, healthy and natural Low investment No need to vent. Adaptability to virtually any business premises Operational and management simplicity Global support and continued in all areas of business (real estate advice, training, operations, purchasing, quality control, marketing, etc) Strong growth potential in the Spanish market Possibility of joining the company as an agent of development

Strategic Marketing Environment

In the year 2004, sandwiches from the biggest market divisions contributed 36.5% of the overall sales. The changing trends of short lunch breaks and light food intake now days have immensely benefited the demand for food chains such as SUBWAY and others, where they provide a large variety of bread and filling. The trend within the youngsters portrays the intake of SUBWAY sandwiches of over 54% in the previous years, which goes to show that penetration is quite high. The revenue generation in the last 5 years has been relatively low when compared with the stats of the earlier years as people today are more inclined towards eating healthy. In the year 2004, the fast food industry of the UK was valued at an estimate of GBP 8.4 billion, which even displayed a sales growth of around 3.9% from the previous years. (Red Orbit, 2009 pp. 19)

SWOT Analysis

The commonest mechanism for structuring audit information to provide a critical is SWOT Analysis (Pettitt, 2006 pp. 1007).

Strengths

Size & Number of stores

Menu reflect Demand

Worldwide brand recognition

Low set up cost

Weaknesses

Decor is outdated

High employee turnover

Service delivery is inconsistent from store to store

Opportunities

Continue to Grow Global Business.

Improve Customer Service Model

Continue to revise and refresh menu offerings

Continue to expand channel ...