Subway International and the Global Fast Food Industry
Murad H. Yousef
BU 502 - Applied Business Research and Communication Skills
Southern State University
August 21, 2015
Abstract
This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs. Keywords: Subway, factor, competition, expansion.
Executive Summary
Introduction The success of Subway started in 1965, when Fred Deluca took an advice from family friend Peter Buck, to open a sandwich shop to earn more money and to pay for his education. The first Subway branch opened in Bridgeport, Connecticut. Their target was to open 32 restaurants in ten years,
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
This report analyzed and exposed the issues facing Go Sushi, a small franchised retail enterprise in the take away food industry. The information received is based on interviews with owner and innovator Luigi Bertolacci, and research in to the external and internal environment related to Go Sushi and the take away food industry.
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
Zoë’s Kitchen is a successful restaurant in a new segment of a matured restaurant market. This company creates an at home atmosphere for the consumer to give the perception of an at home meal. There are a lot of competitors within the market and for just this company alone. Though, Zoë’s is differentiated enough as a whole to not actually have a true competition. There are upcoming threats in the fast-casual market from fast-food chains entering the market through mergers and adding healthier foods to the menus. The purpose of this analysis is to inform and forge a conclusion of what this company should do about its future.
Fred Deluca was a business entrepreneur who co-founded the restaurant chain called Subway. He was born in in Brooklyn, New York on October 3, 1947. He wanted to go to college to study medicine. He was encouraged by family friend Dr. Peter Buck to make money for college. His business started in 1965 when he borrowed money to start a business so he could pay for college. He didn’t succeed at first but he kept trying and was worth 3.5 billion dollars. He died from leukemia in September, 2015.
If a company where to expand its franchise network internationally, one consideration they must research would be culture. The importance of critically thinking about culture while expanding into another country is that every country has different values and traditions. For example, in Argentina, vegetarianism is not at all common; therefore vegetarian restaurants would not be a good fit for that country.
Burger King is headquartered in Miami, because of its near proximity to Latin America. This strategic position has allowed Burger King to ensure its presence in the Latin community. The South Americans who make a pit-stop in Miami in order to enter the United States are familiarize themselves with the Burger King products, and Burger King is also able to test the products on indigenous Latin community, before expanding to the Latin countries without the fear of undergoing rejection. This location in Miami has simplified their entry into the Latin countries and businesses seeking franchises find it easier to work with them. Burger King has strengthened their global competitive position in the Latin countries, but we find that these countries are not heavily populated; they should also try to expand to denser populations like those of China, India, Nigeria etc. this could prove to be more profitable in the long run. Burger King can use the South American countries to understand how to expand appropriately in other
On the other hand one has to keep their store clean and well organised. Thus, it affects the various areas of marketing such as advertisement, better quality of service and customer satisfaction. Meanwhile as it’s a franchise company, their franchisees must have to work hard to make improvements regarding their food and services. Although to achieve their objectives SUBWAY® as a whole organization, have to work hard in improving its menus or in advertising its
Introduction Opening up a business such as a franchise can carry many risks, both financially and personally but can also be very rewarding and challenging. Some people make a decent living, some end up rich, then again, plenty of people fail. (MSNMoney, 2014) There are many advantages of owning a franchise. Some advantages are that you have association with a well-established brand, reputation and product or service, access to established standard procedures, operating manuals and stock control systems.
This paper is about Panera Bread Company and the strategy it employs to become the best brand name of fresh bread in the United States. Panera Bread specializes in providing fresh goods, made-to-order sandwiches, salads, soups, custom roasted coffees and other cafe beverages. The company generates revenues through three business segments: company bakery-café operations, franchise operations and fresh dough operations. The company’s bakery-café operations segment is comprised of the operating activities of the bakery-cafes, owned directly and indirectly by Panera. Their franchise operations segment is comprised of the operating activities of its franchise business unit, which licenses qualified operators to conduct business under the Panera
Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.
Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.
First is “Healthy” with the combination of many kind of vegetable with meat and their many types of their own special sauces, their sandwich completely provides the essential nutrients. This will lead the consumer can eat fast food which provide them quick service without destroying their own health. Subway use this key strength to influence the consumers, especially group of people who highly concern about their health. In addition, Subway has a various menu which lead them to reach broadly target group.
It is summer in Ghana and I’m walking down a block in my neighborhood. The air is hazy and dense and the smell of food fills every corner. A city that never used to have any of foreign foods, now filled with the aroma and signs of fast food restaurants. As I walked, I realize that there was only one whole food market. Meanwhile, a McDonald’s and Kentucky Fried Chicken were seen on multiple corners. Another thing I noticed: the majority of people entering the fast food market are from places that were once filled with only traditionalists. A region where its former citizens used to invest their time in cooking local traditional food and sold them to the public and families. These same communities have now become so westernized that they neglect the traditional side of diet. Instead, everyone now focus on the new fast food market. People are flocking with their families into the fast food restaurants. Watching the differences between those who entered the supermarket and those who entered the McDonalds’s, I couldn’t help but think about complications minorities in the United States face from the fast food market.
Subway is the name of a franchise fast food restaurant that mainly sells sandwiches and salads. It was founded in 1965 by Fred De Luca and Peter Buck. The corporation that owns the trademarked name of Subway is Doctor's Associates, Inc. (DAI). The company has over 28,400 franchised units in 87 countries as of September 2007 and is the fastest growing franchise in the world. It is currently the third largest fast food chain globally after YUM! Brands (34,000 sites) and McDonalds (31,000 sites).