Subway: Internal Environment Analysis using Resource-Based View, Value Chain Analysis, VRIO and SWOT Models

Running head: Strategy and the global competitive environment 0
Subway
Strategy and the global competitive environment

Strategy and the global competitive environment 1
Executive summary
The purpose of this report is to provide overview of the internal environment of Subway in
Trinidad and Tobago. The internal environment of Subway is analysed by various models.
The resource based view model is used for evaluating resources, capabilities and core
competencies of Subway. The value chain analysis have also significant role in the success of
Subway. It regulates the process at the company. Whereas VRIO model is perfect for the
evaluation of the Subway’s resources. The SWOT analysis is the most important model of
internal environment. It represents thoroughly the strength, weaknesses, opportunities and
strengths of Subway. Finally, 8P framework is used to define the product, price, place,
promotion, productivity, people, process and physical evidence.
Finally it can be concluded that the internal environment of Subway can be properly analysed
by using the above models.

Strategy and the global competitive environment 2
Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Analysis.................................................................................................................................................3
A look at the Subway restaurant’s current internal environment...........................................................3
Models for analysis................................................................................................................................4
The resource-based view...................................................................................................................4
Value chain analysis..........................................................................................................................5
VRIO.................................................................................................................................................6
SWOT...................................................................................................................................................7
8 P’s framework..................................................................................................................................10
Conclusion...........................................................................................................................................12
Recommendations...............................................................................................................................12
References...........................................................................................................................................14

Strategy and the global competitive environment 3
Introduction
The global competitive environment now days require organizations not only to compete in
their abilities to enter new market but also achieve economies of scale. The organizations are
also required to have ability to successfully administrate knowledge flows in the information-
based economy. The challenges are faced in the global economy in order to enhance
competitiveness. Though, it is not sufficient to increase level of competitiveness for
overcoming the challenges. The focus on the home environment can help an organization to
develop world-class knowledge and strive in the competitive market. This report includes the
internal analysis of Subway restaurants in Trinidad and Tobago. Subway is identified as
American fast food restaurant franchise (Christian and Gereffi, 2018). It mainly sells
sandwiches and salads. It one of the fastest leading franchises in the world.
Subway is having over 40,000 locations worldwide. The restaurant offers the nutritious meal
options for the people looking for a quick meal. Subway became the largest food chain in the
year of 2005 in the U.S. measured in the number of stores. The brand drives in more than 100
countries. The headquarter of the company is situated at Milford, Connecticut. The restaurant
is committed to offering a great variety of taste, nutritious food choices along with reducing
environmental footprint and creating a positive influence in the communities. Subway strives
to conduct business in such a way that it has a positive impact on the environment along with
improving the lives of the people linked to the company. Subway makes efforts to ensure that
it meets the highest quality and safety standards. The company is working continually to
improve menus and nutrition benefits.
Analysis
A look at the Subway restaurant’s current internal environment
Subway was founded in 1965 by Fred DeLuca and Peter Buck. It was restructured under the
parent company named Doctors Associates Inc. the process of franchising by Subway was
started in the 1970s. All the Subway stores are operated by Subway itself. The main objective
of the company is to provide fresh and nutrition sandwiches. The company also claims to
establish itself as a fresh and healthy sandwich provider in the food industry (Weinstein,
2016). Subway has enhanced its portfolio of products from sandwiches and salads to
breakfast, catering services, cookies, and kids meals.