Subway was established in 1965 when 17 year-old Fred DeLuca collaborated with Dr. Peter Buck and opened the first Pete's Subway in Bridgeport, Connecticut. Subway didn't start franchising until 1974, when its first franchise place situated in Wallingford, Connecticut. The international headquarters for Subway Sandwich restaurants and franchises are located in Milford, Connecticut ( Retailindustry.about.com , 1965) Presently, the SUBWAY® brand is the well-known submarine sandwich chain with more than 34,000 places around the countries. SUBWAY has become one of the most attractive restaurants for people who want a balanced diet. From early stages, Fred has had the correct goals for his SUBWAY Company. As they improved in their business, they were inspired by his great effort to satisfy customers by serving healthy and fast meals. ( Retailindustry.about.com , 1965)
“Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience” (Source: Retailindustry.about.com , 1965)
Delight every customer so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience. ( Source: Retailindustry.about.com , 1965)
(Source: Ysn.com ,2012)
SUBWAY CORE VALUES AND PHILOSOPHY
• Family – We build our business relationships by serving each other, our customers and our communities, much as we do within our own families. • Teamwork – We challenge ourselves and each other to succeed through teamwork, against shared goals and to be accountable for our responsibilities. • Opportunity – We create an entrepreneurial,
ever-growing SUBWAY community, increasing the opportunity for everyone. ( Source: Retailindustry.about.com , 1965)
It is described as the general environment which concerns the state and trends in the society within which an organization operates. Following highlights the Economy and Sociocultural elements, both of which accounts for the mega environment (Source: Environment.blurtit.com (2000) What Is Mega Environment!?). Sociocultural element
It can be defined as the whole range of attitudes, beliefs, geographical and demographic area that can influenced the development of business. However, this entire element can be changed if the managers have the ability to evaluate the trends (Source: Environment.blurtit.com (2000). It is a fact that nowadays sociocultural is one of the main reasons for any business success. Geographical element involves location. Customer’s tastes may vary between difference locations. For example, Subway in Malaysia compare to America their menu is totally difference. This is because Subway in Malaysia is depends on halal brand and the reason are majority of Malaysian are Muslim. It is very important to follow the culture in Malaysia because it will bring big consequences for the business. That’s why all meats in Malaysia’s Subway are halal. As we know, Indian’s people are sensitive to the cow meat, so Subway also offered the menu that made from chicken and turkey. Furthermore, in order to attract both child and adult people Subway also offering menu that suitable for children such as veggie delite and roast beef. For people that like spicy they have spicy Italian and Italian B.M.T. In addition, subway need to ensure their business was available to everyone whether they are from high income family or low income family. So, their price should be affordable for those people who are come from a different background. Hence, the priority to be success Subway need to rely on sociocultural element such as religion, age and social structure. (Source: Subway.com (2011) Our People, Our Communities)
It is described as the consequences that an organization may face in the process of achieving their goals. The two main consequences faced by Subway are customers and client, and competitors. (Source: Businessdictionary.com(2012) What is task environment? definition and meaning). Customer and clients
"There is only one valid definition of business purpose: to create a customer. It is the customer who determines what a business is. What the business thinks it produces is not of first importance - especially not to the future of the business and to its success. What the customer thinks he is buying and considers 'value' is decisive - it determines what a business is, what it produces and whether it will prosper." (Peter Drucker, 1989) Subway works in unique ways to save customer retention and satisfaction. Subway is known as a company which always successfully has been able to draw and keep new customers and clients by how they maintain their customers and clients, who creates a reputation across the market. Subway provides 3 types of customer service:
1) Product and customer support, here customer can gather information’s about their Subway’s product (menu, nutrition and ingredients) and also can find Popular Questions which customers ask, sorting them by type, subtype and topping. Customers can directly ask these types of question to the Subway’s station. 2) Under the General Inquires client can send email with question about menu or feedback about their websites. Customers can access this information through this website (subway.com). 3) Lastly, in Voice of customer Subway customer service centre is always ready to answer for clients questions. Customers can call them not only in phone but also in Skype. Message will be promptly handled under the direct supervision of their executive management. Subway allows clients to sign in or register as member in their site. It is allows for all consumers of Subway easy to review pages in sites and save in notes of what they are looking for. (Source: Subway.com (2011) SUBWAY Restaurant Customer Service Form) Subway's Compitiors
One of the most influencing Task factor is Competitors. Competitor in a business means a company in the same or similar industry which offer similar or different product or service. The similarity of difference of the product or service may effect in many ways such price, quality and productivity. Subway has many competitors in the fast food market. Three main competitors were chosen to be analysed more closely since they are considered to be the biggest threat. These three are McDonald’s, Burger King and KFC. Like Subway, they all are conceptual fast food chains (Source: BUSINESS DICTIONARY, OCT 2012). Each of these competitors has its own strength and weakness.
A leading global foodservice retailer with more than 33,500 local restaurants serving nearly 68 million people in 119 countries each day. (Source: Aboutmcdonalds.com ,2011)
Figure1 Source: http://www.selfserviceworld.com/article/179307/Kiosks-order-up-faster-fast-food Burger King
Burger King is the second largest food hamburger chain in the world. The original HOME OF THE WHOPPER, their commitment to premium ingredients, signature recipes, and family-friendly dining experiences is what has diefined their brand for more than 50 successful years.
(Source: Bk.com ,1954)
KFC is the world’s most popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy, Colonel’s Crispy Strips and Honey BBQ Wings, with home-style sides and freshly made chicken sandwiches. Since its founding by Colonel Harland Sanders in 1952, KFC has been serving customers delicious, already prepared complete family meals at affordable prices. There are over 15.000 KFC outlets in 105 countries and territories around the world. (Source: Kfc.com ,n.d.)
Competitors like McDonalds, Burger King, and KFC have many similarities in their menus for example french fries, burgers, salads and drinks. For the children there are additional toys in all the three competitors. In the supplier sides, McDonald's has its own supplier for distributing its products; the company uses only a single channel, the McDonald‟s restaurants and McDrive‟s. These restaurants (>30.000) are located in 119 countries all over the world. Burger King distributes their products through the restaurants they own all over the world. The restaurants can be found in airports, cities and highways, where people can easily enter the restaurant for a quick snack, having lunch or dinner with friends or family.
In the other hand, KFC limits the ready-stock products and set the terms & conditions for its amount so they can be served fast and freshly. It’s also happened the same way with Subway. So, we can say that they have succeeded spreading their branch to all over the world and has their own supplier for distributing their products. For promotion, as a general statement, Subway and the three competitors has suceeded because people recognize McDonald’s, Burger King, and KFC everywhere. The fast food chains focus on an overall experience but the one who probably does this most is McDonald’s. But in the quality of food, Subway is the best than its three competitors. They served a fresh and healthy meals and also customers can pick what ingredients do they wanted. So, we can concluded that Subway has many challenges in the future as most of the competitors are coming up rapidly with their new products and innovation. Subway has to apply new strategies and gain some motivation to get rid of their weakness of their products so that the competitions between the other brands will bring profit to Subway and also by producing a better quality product it may create a positive awareness among the aimed customers.
After looking at all the factors, and the services of Subway we can easily conclude that Subway is providing a high satisfactory level of services and products to its customer and its maintaining a very good position in the fast food market in the world and there is still a scope of improvement for its products in future. However, it’s still have competitors and in order to be successful they have to improve their products and management so they can always be no 1 in the sector.
Retailindustry.about.com (1965) Subway Sandwich Restaurants Mission Statement - Mission, Values, Vision, Founders Facts, and Trivia About Subway Sandwich Fast Food Restaurant Chain and Franchises. [online] Available at: http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Subway-Sandwich-Mission-Statement.htm [Accessed: 30 Sep 2012]. Subway.com (1965) History | SUBWAY.com. [online] Available at: http://www.subway.com/subwayroot/about_us/history.aspx [Accessed: 30 Sep 2012]. Ysn.com (2012) subway-logo. [online] Available at: http://ysn.com/subway/subway-logo/ [Accessed: 30 Sep 2012]. Aboutmcdonalds.com (2011) McDonalds - Who We Are – Over 1.5 Million People in 118 Countries :: AboutMcDonalds.com. [online] Available at: http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_system/who_we_are.html [Accessed: 26 Sep 2012]. Bk.com (1954) About BK® | Company Information | BURGER KING®. [online] Available at: http://www.bk.com/en/us/company-info/about-bk.html [Accessed: 26 Sep 2012]. Kfc.com (n.d.) Welcome to KFC.com. [online] Available at: http://www.kfc.com/ [Accessed: 26 Sep 2012]. Unknown. (2012) [online] Available at: http://www.subway.com/ContactUs/StudentGuideEdits.pdf [Accessed: 30 Sep 2012]. Subway.com (2011) SUBWAY Restaurant Customer Service Form. [online] Available at: http://www.subway.com/ContactUs/frmCustomerService.aspx [Accessed: 13 Oct