Subway is American established company, employed in food industry. Franchise structured subway company is famous for sell sandwich and salads. It's working under Doctor's Affiliates Inc. (DAI). Regarding to 12 months 2010, Subway Company is the speediest growing franchise in the all over world, dealing with 35, 000 restaurants in 97 countries. Subway franchise is the next major restaurant world-wide, after Yum! Brands. Matching to 2010, company attained $15. 2 billion income. Subway Company is increasing its franchises at high rate. Subway Company is also sponsoring Subway Fresh Fit 500 that was held in Phoenix Raceway, Pro-cycling team and baseball teams.
History of Subway
Originally, subway was founded in 1965; Peter Buck borrowed $1000 to get started on his own sandwich business. He was only 17 years of age, when he started his shop under name Pete's Submarines. Pete's Submarines was promoted through radio advert. Company's name has similarity with Pizza Marines, so he renamed Pete's subs. After having a sometime, company followed new name Subway.
Subway is producing about $15. 2 billion in every calendar year. Company's main mind quarter is working in USA. Subway is also investing in education, increasing its schools and college or university. Subway was ranked 3rd in speediest growing franchise in market and placed 1st franchise in world wide. Subway is also extremely popular junk food industry in USA corresponding to North american poll.
Subway Company is more well-known for its main product, submarine sandwich. Company is also advertising cookies, muffins and Danishes. In the year 2009, Zagat JUNK FOOD Review' also placed the Subway company offers the healthy food choices and also grouped the best and fast service to its customers.
Mission and Perspective of Subway
" To supply the tool and knowledge to permit entrepreneurs to efficiently remain competitive in the QSR industry worldwide by constantly offering value to consumers through providing great tasting food to them and made the way they enjoy it".
In the objective statement, Subway Company is displaying sincerity towards its customers. Company offers the fresh quality food to its customers and also providing in clean environment with very friendly and fast employees. Subway Company's mission is also hauling useful tools and useful knowledge, which allow to entrepreneurs to compete in neck-cut competition, offering great tastes food, just how customers want it and like it. There is great perspective of company towards customers, opponents and its employees.
We are dedicated to customer satisfaction by offering healthy food with excellent service.
We look for improvement in every operations.
We find the worthiness of sense of importance and present emphasis to the innovative approach to business.
We are expecting a shared understanding and fairness to all or any our business activities.
Our success is based upon the initiative, which we prefer to take specific.
We have capacity to are a strong team.
Competitors of Subway Company
There is definitely a giant rival market for very business. Competition is increasing daily, sandwich places are not only the rivals of Subway, but there's also big giant industries in junk food chain. Burger Ruler and McDonald's are main rivals of Subway. This year 2010, Domino's Pizza (Pizza Delivery Company) also introduced oven-baked subs on the market. There are a few main rivals:
Arby's
Quiznos
Burger King
McDonald's
Domino's Pizza
Quiz no is the largest rivals of Subway. It is the second major sandwich production company after subway, in North America. Quizno's eat-in business strategy is appealing to more customers, with a open up selection of products like fresh-made subs, salads, pasta meal. They are really making 65 percent sales from eat-in business. Quiznos average gross annual sales are$450, 000.
Arby's American founded company founded in 1964 with an increase of than 3000 branches, also a competition for subway in sandwich market in US, selling same products like sandwiches, salads, wraps with really pressing its aggressively marketing ways of make more offers in market. An average annual deal of Arby's is approximately 1. 6 hundreds of thousands.
There are some competitors in market, who may have competition with Subway Company, Miami Subs, Jerry's Subs and Pizza, Blimpie, D'Angelo and Great Steak & Fry etc. , Making sandwiches business gets popular in junk food chain, easy to get ready within less time. You desire a really small amount of investment to start business to make sandwich and you could generate a large amount of revenue.
Stakeholders and Subway Company
Subway Company is an exclusive owned business; it isn't registered in currency markets. Subway is kept by Doctors Relationship Inc. Company is not trading with any stock exchange market.
Swot Research of Subway Company
From the past decade, success in sandwich business segment has been increased double comparative another junk food business. Subway is offering very easy entrance in market. Many other food restaurants are also seeking the opportunities to begin subs in their selections. We are able to analysis Subway's market position through the SWOT research strategy. SWOT evaluation is planning strategy, where we can assess a company from its inner and exterior factors. SWOT can be grouped in two parts:
Internal Factors: Whenever we evaluate an enterprise within its inside factors, we compare its strengths against its weakness.
External Factors: Opportunities and Threats are helpful to assess your business within market situation.
Strengths:
Subway is supplying the best growing opportunities to enter into food business. Matching to franchise analysis, with a less amount of investment can provide to start out in market comparative others like Mc Donald's, Burger King's, Domino's etc. This year 2010, Subway rated 1st as global growing franchise in Businessperson magazine.
Subway offers fresh and healthy food choices in several types of subs, even some doctor's advice to eat its nutrition food. Subway is very popular for lunch break user's customers. "Top service" and "Healthy option" ranked received to Subway from Zagat Survey
Subway is popular to provide its customers at very fast tempo with friendly staff. A custom-made sub takes only one minute to make. Fast service helps to get more customers in business.
Weakness:
Although Subway is fast growing franchise string in food business, but employee's turnover is very high rate in the company.
Subway offers eat-in service to its customers, overlooking delivery segment.
Subway is also offering only subs in market, other business are receiving profits from different kind of food verities.
Opportunities:
New coming technology really helps to improve its procedures to compete neck-cut competition in market.
Expanding global business is creating more places to enter into in different markets.
These days customers are also very emphasizes on the living-standards, higher level of living-standard also gives the positive development to business.
Threats:
New entry of sandwich making business is the biggest hazard to Subway. It creates high level of competition in market.
Micro-Economy condition of also develop a menace to subway; turmoil of 2007 to 2009 strike all businesses very terribly.
Strategies of Subway Company
Subway Company is adopting lots of ways of increase its business. We can analysis its marketing strategy of Subway through 4Ps. 4Ps strategy is very famous strategy, product, price, place and promotions.
Product Strategy:
Subway is well-known for its fresh loaf of bread. Company is more centering to keep its standard to its fresh product (breads). Product strategy is participating in a essential role for any business. Subway products its fresh bakery is making its brand name strong in market. They introduce and sell its product according to customer's requirements
Price Strategy:
Subway Company's price strategy is assisting to maintain all prices regarding to competition. Competitive price also get more customers in market and also contribution to produce more success to business.
Place Strategy:
Location of any business affects its long term strategy. Subway exposed its more than 35, 000 franchise worldwide. Company make an effort to open shops near shopping centres, institution and university etc.
Promotion Strategy:
Subway is implementing a lot of activities to promote its business. Sponsorships with movie-makers and toy making company will create a more space in market. Subway's 99 percent advert on coming on televisions, radios etc. Company is spending huge amount on its ad, corresponding to a review company spending $38. 7 a huge number, if we compare with Arby's and Blimpie they are simply spending $26. 3 million and $ 2million respectively.
Conclusion
Subway is the leader in reselling sandwich market, offering to eat a wholesome food. Subway is fighting in high competitive market using its strategic marketing ideas. Subway Company is signed up under DAI, which private had Business Company, functioning its main procedures in Milford. Subway is now famous for its healthy food choices as Subway Diet. They can be making new strategies to extend its business and more focusing on product technique to create market competition. Subway's fresh bread(product) is making itself strong position in global competition.
