Subway Case Analysis

Topics: Fast food, Subway, Submarine sandwich Pages: 4 (1291 words) Published: October 1, 2006
Case Study #1 – Subway Sandwich Shop Analysis

Case Study One – Subway Sandwich Shop
Situation Analysis
A situation analysis is an honest valuation of the opportunities and potential problems facing a prospective or existing company. Through analysis a deeper understanding of an industry, competitor and possible options can be examined. Subway Sandwich shops early history roots can be traced back to the summer of 1965, with a $1,000 investment a new venture was born. Fred DeLuca and Dr. Peter Buck worked hard to expand their business by 1974; the duo owned and operated 16 units throughout the state of Connecticut. (Subway History, 2006). A turning point for the partners was 1974, at this juncture the duo decided to take the business to a new level, franchising. Fast forward to 2006 Subway franchises now total more than 25,000 restaurants in 83 countries. Market Summary

In a crowded US fast food market, the Subway brand risen to fill a key niche amongst consumers who were driven by panicked media coverage of the rapid rise in obesity. Subway marketing has been marketing its ability to offer fresh produce and tasty low-fat options that are just as quick and convenient as high-fat menu staples such as burgers and fries. Subway began serving up eight sub sandwiches that contain less than 6 g of fat – six times less than a McDonald's Big Mac] ( Parker, A Healthy Taste, 2006). Subway menu includes; subs that cold, hot and toasted, salads and wraps. In addition to core menu items Subway offers additional items to complement a consumer's selection like soda, chips and cookies. Demographics

Subway has become in the U.S the number one franchise in a relatively short time span by positioning itself in multiple locations like churches, hospitals, schools, retail stores like Wal-Mart and Home Depot. Positioning the company; along with categorizing the subs sandwich as a healthier alternative to fast-food chains like McDonald's, has...
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