Subway Case Study: Innovation Strategies in Business Management

This report evaluates Subway's innovation strategies for sustainability and market popularity within the fast-food industry. It examines the company's history, innovation timeline, and existing capabilities, including human, physical, and intellectual resources. A PESTEL analysis highlights political, economic, social, technological, environmental, and legal factors affecting Subway's operations across 110 countries. The report discusses Subway's strategic capabilities, such as unique sandwich artists and the 'eat fresh' motto, and addresses challenges like declining market share and slow adaptability to technological advancements. It emphasizes the need for updated products, marketing strategies, and technology integration to regain a competitive position. The study concludes that effective innovation is crucial for Subway to achieve its objectives and secure its market position.

Managing Innovation
in Business

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
In the 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
achieve sustainability or popularity in marketplace. The organisation has taken into
consideration the fast food chain industry’s strategies for the survival. The study helps in deeper
understanding of various innovations by the organisation in their products which is submarine
sandwiches.
INTRODUCTION
Innovation is the continuous process for the purpose to deal with the changing needs of
consumers and therefore, its very important to implement and adapt the right strategies for the
purpose to succeed in the marketplace. The main objective of the report is to identify the
purpose to obtain the right insights for the purpose to enforce various innovations for the
products of organisation. In context to the industry, the industry chosen is Food business
industry as the aim to excel or work 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. and Hutchison-Krupat, J., 2020). The organisation is running in
approximately 44,000 areas globally. The company is running its operations in approximately
110 countries. In context to restaurants or franchises have follow by the a particular motive that
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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 involved in
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 and pull
delivery system for the purpose to maximize the productivity and minimize the wastage. In
addition to that, the organisation uses eco friendly packaging material and 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 over the 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
1965 In this year, the company innovated submarine sandwich.
1965-75 During this period, new raw materials and ingredients were
used in the sandwiches.
1976-85 During this period, the company focuses on eat fresh motto
with the usage of fresh raw materials.
1986-95 During these years, the company started using healthy
ingredients and basically comprises of spinach. (Brem, A.,
Tidd, J. and Daim, T.U. eds., 2019).
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1996-2005 During this period, the organisation started to use condiments
and rich spices for the purpose to enhance the taste of their
food items.
2006-2016 During these years, the organisation started to use egg white
patties.
2016 and beyond During 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, the outlets of the organisation were positioned
primarily at 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.
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PESTEL Analysis: In context to organisation, the pestel analysis of the organisation 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 the company 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
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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
Rare and Unique strategic capabilities: In context to the organisation, the rare strategic
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.
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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.
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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. In Behavioral 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
paradox of the focal firm in innovation ecosystem: The perspective of ambidexterity
capacity. Management Review, 30(8), p.290.
Kavadias, S. and Hutchison-Krupat, J., 2020. A framework for managing innovation. In Pushing
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.
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Appendix
SWOT Analysis
Strength
Leader in the sandwich industry
Strong customer loyalty and massive demand
of the products
Weakness
Technology used is outdated
Outdated philosophy
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
Massive international competition.
Indigenous industries.
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