Subway Case Analysis

Topics: Fast food, Fast food restaurant, Hamburger Pages: 4 (1335 words) Published: February 6, 2007
Subway Case Analysis
SUBWAY® is the market leader in sub and sandwich shops offering a healthier alternative to traditional fast foods. SUBWAY's® annual sales exceeded $6.3 billion dollars, while countless awards and accolades have been bestowed its chain over the past 40 years. SUBWAY® had 7,825 units worldwide with 7,750 units in North America whilst its rapid growth has attracted many investments and brought it many competitors such as KFC and Burger King. Recent initiatives to attract customers beyond SUBWAY's® traditionally health-conscious consumers should increase the company's share of the fast food market. Strategic Marketing Issue

Being part of a highly competitive and dynamic market, SUBWAY® faces a strategic marketing challenge as to what specific marketing mix to use in order to sustain a differential advantage while maintaining sales growth and, above all, profitability. Issue Response

Subway effectively competes with burger chains and others that are in the fast-casual segment of the market. Including healthier meals into its menu and giving much attention to obesity and diabetes have supported consumers' choice for Subway (Tarantino, 2005). However, Subway has not been satisfied thus far; instead, more intensified efforts have been made to improve business during the dinner hour. Additional menu options have also been added to answer competitors' trends and to place more focus on the children's segment. Proof

Team B's SWOT analysis can be helpful to highlight Subway's 1) internal strengths and weaknesses along with 2) the external opportunities and threats.
In the past few years, the sandwich market has gained incredible popularity in the American culture. As the fast food landscape continues to evolve and change, one of the most dynamic segments within the quick serve restaurant market continues to be sandwiches, subs, and wraps. Driven by consumer interest, sandwich chains are expanding in locations as well as variety. The...

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Cebrzynski, G. (2006, May 8). It 's 5 p.m. Do you know where your dinner is? Subway does. National Restaurant News, 40(19) p18. Retrieved September 1, 2006 from EBSCOHost
Food for thought. (2003, September/October). Marketing Management. 12(5) 5.
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Spethmann, B. (2006, July). Subway freshens kids marketing: vans tie-in drives summer action for kids, tweens: Promo, 19(8), p17.
Subway (2006). Subway Corporate Website. Retrieved September 8, 2006 from
Tarantino, D. P. (2005). Bariatric Surgery: Assessing Opportunities for Value Innovation. Surgical Innovation, Vol 12, No 1. Retrieved September 8, 2006 from the Web
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