Business Strategy for Subway: Analysis and Implementation

Running Head: Business Strategy 0
Business Strategy
(Student Name)

Business Strategy 1
Introduction
Subway is an American fast food franchise that is owned by Doctor’s Associate, Inc. It operates
in the global market while it has expanded its business in more than 90 outlets. Subway was
founded by Peter Buck and Fred DeLuca with its first restaurant that is being set up in
Bridgeport, Connecticut US in the year 1965 (Makki, Ozturk and Singh, 2016). The statics
represent the chained foodservice market share of Subway in Singapore from the year 2012 to
2016. In the ear 2016, Subway in the country has a market share of almost 2.8 % that represent
slightly enhancement from 2.6 percent in 2012. The sales of the Subway fell 1.7% in the year
2016 from $11.5 billion in the year 2015 to $11.3 billion (Yan, Zhao and Guo, 2018).
(Source: Statista, 2019)
The mission of Subway is to offer value to the consumers by providing the quality and tasty food
that is good for them and made the way they like it. The vision of Subway is to become a Quick

Business Strategy 2
Service Restaurant (QSR) franchise in the international market while delivering healthy, fresh as
well as delicious sandwiches with a unique experience (Fettling, 2017).
External Analysis
The main purpose of analyzing the external environments is to support in developing a plan by
keeping the decision maker within a company. It helps Subway in making effective decision
according to the change in the external environment that will help in changing the threats into
opportunities for the company
PESTLE Analysis
Singapore is one of the developed countries in Asia with several policies and regulations that
attract the maximum number of consumers over the world. Singapore has also friendly as well as
open policies for foreign companies. The country is considered at the potential for the food
industry with about 5.1 million of the population in Singapore (Henderson, 2016). The increasing
number of the new establishment such as fast food franchise as well as a strong brand around the
country has represented a significant growth and development in such sector. It has been
analyzed that 90% of the population like fast food on a regular basis and 10% love fast food. It
increases competition in the industry of fast food at a greater level. Most of the small chain faces
challenges for surviving in such industry (Dunford et al., 2017).
The politics of Singapore is a combination of equality as well as bureaucracy. The government
has taken various steps to prevent unhealthy food in Singapore. . Sales of Food Act also mandate
that the products of food that contain sweetening agents shall carry advisory statement related to
the consumption by children below 9 years in the prescribe form. Diabetes Prevention and Care
Taskforce is conducting the studies on additional implementation measures to motivate reduction
of sugar consumption in Singapore. Such potentially include sugar tax, warning labels as well as
advertising restrictions on sugar-sweetened beverages (Stanford, 2016). Therefore, Subway also
served cold drinks that create challenge for them to target the people of Singapore
Moreover, in the recent scenario, the rate of inflation in Singapore is raising that affected overall
sales and revenue of the fast food companies at a greater level. The consumer price index of

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Singapore probably rose by 0.6 % in January that enhances the cost of food products (Kong,
2015). It created a great impact on the sales of Subway due to the reason the increase in inflation
rate enhances the price of Subway’s products that resist the consumer to buy such high priced
product. Therefore, the fluctuation in the economy of the country has a direct impact on the
performance of the company at a greater level.
Singapore is one of the eastern countries who still follow traditional families’ values. They
majorly prefer authentic food and nowadays the population of Singapore is conscious towards
healthy eating that affected the overall demand and sale of Subway (Fischer, 2019). Health
Promotion Board has also taken initiatives in spreading awareness for healthy food in Singapore.
They influences on the dietary choices of Singaporean, with the growing number of healthier
meals that is served by the food a well a beverages outlets by three fold over last three years. In
the recent 26 million of Singaporean are switched towards healthier meals (Health Promotion
Board, 2019).