Competitive Advantages and Disadvantages
Subway prides themselves on their sandwiches -- custom-made on freshly baked breads, Subway sandwich shops provide fresh, great-tasting 'made to order' subs, salads and wraps, with extraordinary customer service and value. Millions of customers think of Subway shops sandwich options (including '8 under 6' grams of fat) along with spokesman Jared Fogle -- as their preferred fast food choice for intelligent eating habits. The Subway chain has maintained a international name for offering fresh, tasty, healthier alternatives to conventional greasy foods." Subway surpassed McDonalds which is the world leading hamburger chain, in terms of having the most stores around the globe. Nine years ago Subway was the leader in having the most stores in the United States. There are over 7500 Subway’s stores located in places where you would not think about putting such a store. There are subways in schools, zoo’s, movie theaters, department stores just to name a few. In China there are about 200 stores and there is a plan to open about 300 more. It costs less to open and operate a smaller format store giving them one of many competitive edges.
Another competitive edge is Subway allows its franchise to choose their own food suppliers, to ensure they can access the freshest ingredients from their local markets. This gives Subway a competitive advantage by enabling them to produce nutritious sandwiches with the freshest ingredients. Hence their catch advertising tagline – “Subway – eat fresh.”
A big reason for Subway’s efficiency success is due in part to Subway’s operations manual. Subway stores operate like a well oiled machine. When you enter a Subway franchise your will see no more than 3-4 workers at a given time. There spunk and fire to be associated with the franchise gives the impression that they really like working for the franchise. Subway combines three effective selling points to warrant a...