Managing Innovation in Business: A Case Study of Subway's Innovation Strategies
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This report evaluates Subway's innovation strategies for achieving sustainability and popularity in the marketplace. It includes a SWOT analysis, innovation history, and industry overview.
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Managing Innovation in Business
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Table of Contents Executive Summary.........................................................................................................................1 INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 The Organisation & Industry Overview.................................................................................1 The Organisation and its Innovation History.........................................................................2 The Organisations existing Capabilities and Performance of innovation..............................5 The Industry in 2022..............................................................................................................6 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................7 Appendix..........................................................................................................................................9
Executive Summary Inthe present study, it involves the efforts which are made for the purpose to evaluate the strategies of the innovation which are adapted by the organisation Subway for the purpose to achievesustainabilityorpopularityinmarketplace.Theorganisationhastakeninto consideration the fast food chain industry’s strategies for the survival. The study helps in deeper understanding ofvarious innovations by the organisation in their products which is submarine sandwiches. INTRODUCTION Innovation is the continuous process for the purpose to deal with thechanging needs of consumersand therefore, its very important to implement and adapt the right strategies for the purpose to succeed in the marketplace. The main objectiveof the report is to identifythe purpose to obtainthe right insights for the purpose to enforce various innovations for the products of organisation. Incontext to the industry, the industry chosen is Food business industry as the aim to excel orwork in the future industry. In context to the product, the submarine sandwich is chosen as the product because the company has come up with new ideas and innovation strategies over the years. In context to the industry, the SWOT analysis has been formulate with the market and the organisation. MAIN BODY The Organisation & Industry Overview In context to the case study of Subway’s history, it helps in providing sufficient insights into its inception, the performance, present market capabilities and mechanism which are basically followed by the company in order to become one of the biggest chain of sandwiches in country(Kavadias,S.andHutchison-Krupat,J.,2020).Theorganisationisrunningin approximately44,000 areas globally. The company isrunningits operations in approximately 110 countries. In context to restaurants or franchises have follow by the a particular motive that 1
captured in growth industry. With reference to organisation, the vision of the company is being the top quick service restaurant franchise in the world, providing an exceptional experience and delivering delicious sandwiches. In context to the organisation, the operations involvedin different areas of the company followed by a specific model called Lean approach.(Mousavi, S., Bossink, B. and van Vliet, M., 2018).Moreover, the organisation uses the just in time andpull delivery system for the purpose to maximize the productivity and minimize the wastage. In addition to that, the organisation uses eco friendly packaging materialand also uses energy lighting, eco friendly furniture and low flow taps. The organisation has various outlets in the country in America as compared to the McDonald and Starbucks. In context to the organisation, the company has seen tremendous growth overthe past decades and focuses on providing the healthy option to individuals in place of the fast foods. The Organisation and its Innovation History Subway’s innovation Timeline (Year)Innovation 1965In this year, the company innovated submarine sandwich. 1965-75During this period, new raw materials and ingredients were used in the sandwiches. 1976-85During this period, the company focuses on eat fresh motto with the usage of fresh raw materials. 1986-95During these years, the company started using healthy ingredients and basically comprises of spinach. (Brem, A., Tidd, J. and Daim, T.U. eds., 2019). 2
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1996-2005During this period, the organisation started to use condiments and rich spices for the purpose to enhance the taste of their food items. 2006-2016During these years, the organisation started to use egg white patties. 2016 and beyondDuring this period, the idea of eating fresh faced a paradigm shift and the company went through a decrease in their profit in the year 2015. The 4ps of the innovation space Product:In context to organisation, the primary products sold by the company are sandwiches and also offers a diverse range of sandwiches in the forms of the subs and also offers other items such as beverages. Process:In context to organisation, the company has evolved a mechanism of offering products to the consumers and as established themselves as the leading chain of the sandwiches. The process of the company also comprises of the build your own meal as it allows the consumers to customize their sandwiches according to their wish. Positioning:In context to organisation, theoutletsof the organisation werepositioned primarilyat various cities and has been usually located in the areas of the individuals having high income and are easily accessible for the residential areas and major landmarks. Paradigm:In context to the organisation, the company has redefined the entire QSR industry specially in the American region. The organisation bought a shift on how the people look at the food industry and how they eat. 3
PESTEL Analysis: In context to organisation, the pestel analysis of theorganisation involves the following factors. Political Factors:In context to organisation, the company is currently present in almost 110 countries. The political environments of the government in these countries. In context to organisation, the company has to deal with the various political factors(Si, H., Kavadias, S. and Loch, C.H., 2022). Economic Factors: In context to the organisation, the major economic factors are usually related to the recession of global economics. Social Factors:In context to organisation, the company had to deal with a lot of factors and it is very important to identify these social factors. Technological factors:In context to organisation, the technology plays a really important role and in reference to subway, the company uses outdate technology and it is very significant to use customer friendly applications. Environmental Factors: In context to the organisation, the company uses eco friendly packaging materials and is focusing on going green (Jingbo, H., Taohua, O., Delin, Z. and Hailong, F., 2018). Legal factors:In context to organisation, the various taxation mechanisms and diverse rates can result in affecting the operations of thecompany and in reference to subway, the license requirements is considered to be an important legal factor. The Organisations existing Capabilities and Performance of innovation Company’s Resources 4
Human Resources: In context to the organisation, the company has around 804560 employees globally. In context to the company, the number of the employees are evaluated. Physical Resources: In context to organisation, the physical resources of the organisation involves the various outlets more than 110 countries and approximately 44,000 outlets all over the nations. Intellectual Resources: In context to the organisation, the intellectual resources are the recipe and ingredients used in the company. Strategic Capabilities RareandUniquestrategiccapabilities:Incontexttotheorganisation,therarestrategic capabilities are basically the idea of the three employee outlets and sandwich artists. In reference to the idea of eating fresh was basically developed by the company which was unique. In addition to that, various other countries of the food business industry also adopted this idea. Value of strategic capabilities:In context to organisation, the strategy capabilities involves a large market which basically depicts that the company could generate various revenue patterns as the organisation has seen Robust Growth and in context to company, its strategic capabilities value is really high. Imitable Strategic Capabilities: In context to organisation, it basically refers to delivery in a speedy manner which the organisation offer to its consumers. The Industry in 2022 In context to the organisation, the decline in the market share and the revenue has been observed in the past years. In addition to that, the company is highly solid. The necessary features which the company is going through is rapid growth and slow adaptation. 5
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Rapid growth: In context to organisation, the company has went through a rapid growth period and has not have enough time for the purpose to merge diverse market position which is penetrate. With help of growth it helps in pushing the organisation towards the ignorance in the respect of the consumers and market. In reference to the organisation, the innovation in the company which is considered to be the fast food industry’s latest trends. In reference to organisation, the products which the organisation has planned to involve in their menu which is considered to be the latest trends in the fast food industry.In addition to that, it involves animal welfare, delivery facilities and working consumers. Moreover, the subway has chose a particular menu for the purpose to innovate business which helps in attracting the consumers. Slow adaptability: In context to the organisation, there have been various claims which is used by the technology used in the company. In reference to the organisation, the company provides fresh edible through incorporating fresh ingredients and has allowed other organisation to get in on the competition. In reference to 2022, it is very important for the organisation to update its products and to incorporate new ideas in their business strategy(Choo, A., Narayanan, S., Srinivasan, R. and Sarkar, S., 2021). In reference to the organisation, innovation in its product is not enough, it is very important to carry out various marketing strategies. It is also very important for the company to bring application on market’s various platforms or various nations. With the help of application, it will allow the customers for the purpose to order food online. In addition to that it is very important to incorporate latest technology in their outlets. In addition to that, it allows the customer to create their own desired sandwiches. In addition to that, the organisation need to got right of entry to the fresh ingredient for their goods(Bonesso, S., Cortellazzo, L. and Gerli, F., 2020). In reference to organisation, it is very important to incorporate all the strategies in the period of consolidation and innovation.In reference to organisation, it helps in increasing the gain and revenue and getting the former position in the food business. It is very important for the organisation to embark the innovation mission in its operations of the company. 6
CONCLUSION From the above report, it can be concluded that the organisation has its operations in various countries and has survived themselves in various economic, social and political conditions. It can be analysed that the organisation has chosen to carry out various innovative ways with taken into consideration the various factors. In reference to the company, if they follow innovation in a effective manner, it could result in more opportunities for the organisation and also for the company, the innovation process will support the organisation in achieving its aims and objectives in a effective and timely manner which is also important to secure them from the tough competition in the market. REFERENCES Books and Journals Bonesso, S., Cortellazzo, L. and Gerli, F., 2020. Managing Innovation Through a Competency- Based Approach. InBehavioral Competencies for Innovation(pp. 69-78). Palgrave Pivot, Cham. Brem, A., Tidd, J. and Daim, T.U. eds., 2019.Managing Innovation: What Do We Know about Innovation Success Factors?(Vol. 33). World Scientific. Choo, A., Narayanan, S., Srinivasan, R. and Sarkar, S., 2021. Introducing goods innovation, service innovation, or both? Investigating the tension in managing innovation revenue streams for manufacturing and service firms.Journal of Operations Management,67(6), pp.704-728. Jingbo, H., Taohua, O., Delin, Z. and Hailong, F., 2018. A case study on managing innovation paradoxofthefocalfirmininnovationecosystem:Theperspectiveofambidexterity capacity.Management Review,30(8), p.290. Kavadias, S. and Hutchison-Krupat, J., 2020. A framework for managing innovation. InPushing the Boundaries: Frontiers in Impactful OR/OM Research(pp. 202-228). INFORMS. Mousavi, S., Bossink, B. and van Vliet, M., 2018. Dynamic capabilities and organizational routines for managing innovation towards sustainability.Journal of cleaner production,203, pp.224-239. Si, H., Kavadias, S. and Loch, C.H., 2022. Managing Innovation Portfolios: From Project Selection to Portfolio Design.Available at SSRN. 7
Appendix SWOT Analysis Strength Leader in the sandwich industry Strong customer loyalty and massive demand of the products Weakness Technology used is outdated Outdatedphilosophy Opportunities With the food trucks being the reason for growth and various opportunities. Growth and chances of advantages in the various other popular countries. Threats Massiveinternational competition. Indigenousindustries. 8