Subway's Competitive Advantage: A Market Position Analysis

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Table of Contents
INTRODUCTION.........................................................................................................2
ORGANIZATION POSITION.......................................................................................3
FUNCTIONAL AREAS................................................................................................5
DIFFERENCE FROM OTHER ORGANIZATIONS.....................................................7
CHANGE IN POSITION..............................................................................................9
CONCLUSION.......................................................................................................... 10
REFERENCES..........................................................................................................11
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INTRODUCTION
The competition in the business environment has been evolved at a huge pace
which results in a substantial challenge for the organizations. It has been evident that
the business practices of organizations have been evolved at a huge level in the
industry. Past practices have been transformed through the enhancement of
technology and current trends. Every organization has enhanced their business
practices to a huge extent to gain effectiveness in the business. Subway is a huge
restaurant chain which started their business in the USA then it has been expanded
to different regions of the world. The business operations of Subway have been
transformed with time and the organization has maintained a substantial position in
the market (Levy and Tardiff, 2018). A report has been developed which would focus
on assessing the market position of Subway in recent time along with their role of
functional areas in gaining competitive advantage. Further, suitable
recommendations are made for Subway so that they could avail significant benefits
in the market.
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ORGANIZATION POSITION
Subway has been operating in the business environment of the USA since 1965.
The organization has effectively positioned their products in the market of USA and
further they have expanded in other markets such that around 38,000 restaurants of
Subway are operating in the world. The mission statement of Subway is to
consistently offer values to the customers by tasty and healthy food at the global
level. In addition to this, there are certain goals and objectives of Subway which
assist the organization in positioning their brand effectively in the market (Subway,
2017). The major goal of Subway in the business is to attain a top ranking of the
quick-service restaurant at a global level while ensuring that they maintain high
quality and taste of their products.
The organization has effectively focused on key aspects of the business which helps
them in gaining effectiveness. The position of Subway in the market has been
maintained through their quality products as they offer high-quality products such as
salads, beverages, sandwiches, and soups (Simms, 2011). Also, the products are
salt-reduced, calorie-reduced, no trans-fat, and calorie labelled. The ingredients
used in the sub are freshest and the products are made after considering the choices
of the customers. The price of the Subway products is reasonable in nature so that
they could offer quality food products to the majority of the target segment. The
pricing strategy used by Subway is differential pricing strategy along with value
pricing which assists them in building values of their products among the customers.
The market need is effectively addressed by Subway through their diverse products
range which has helped gain the attention of a large number of consumers. Subway
has carried competitive analysis in an effective manner which has helped gain
benefits against them. The major competitor of Subway is McDonald in the business
which has been lagging behind the organization in terms of taste and health aspect.
The effective positioning of Subway has been carried in the market as the
organization has understood the perspective of the consumer needs along with the
market analysis (Choi and Reid, 2018). In addition to this, the competitor situation is
also assessed by the organization that helps in determining the trends such that
suitable enhancements are carried by Subway for maintaining a competitive edge.
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The adequate consideration of the market has been helpful for Subway in positioning
their brand in the market and availing huge consumer base.
4

FUNCTIONAL AREAS
Subway has maintained a substantial position in the market due to the effective
operations of its key departments. The departments have ensured that the quality of
the products is high and they are good for health such that the major requirement of
the customers is fulfilled. The role of the marketing and operations department has
been significant among the other departments of the organization. These
departments have been playing a major role in the functioning and operations of the
organization which assist them in gaining suitable benefits.
The marketing department of Subway has been indulged in conducting a diverse
range of marketing activities which assist the organization in strengthening its
position in the market. The brand image of Subway has been developed strongly in
the market due to attractive branding. The promotional strategy carried by the
marketing department of Subway has been effective in nature, the advertising of
their products have been carried by the person who personally sells the products
and also carries the public relations and sales promotion (Subway, 2017). The
organization has been conducting their marketing with a motto of “Eat Fresh” which
promotes the high quality and freshness of their products. The major consumer base
of Subway is in 18 to 40 years such that the major promotions are carried on the
sports and cable networks. In addition to this, the advertisements for Subway are
designed in such a manner so that the customers are aware of the products and
consider them during their purchase of fast food. The marketing department has
been effectively working with the current marketing trends and conducting the
marketing activities on different platforms such as social media platforms,
televisions, etc. which has helped build a potential image of the organization in the
market.
In addition to this, the role of the operations department is also vital in the success of
Subway in the market. The operations department is comprised of various aspects
which focus on the supply chain management, logistics, etc. that further help the
organization in ensuring substantial benefits in the business. The high quality of
products is offered to the customers through the utilization of quality raw materials.
The subs which are used in the sandwiches are made from good quality of raw
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materials. It is ensured by the operations department of Subway that the raw
material used for the products is fresh in nature and possess high nutritional value
(Subway, 2017). In addition to this, the operations department also work on logistics
such that providing home delivery of the products to the customers. The effective
functioning of the department ensures that the organization offer quality food
products to the consumers. Also, the outlets of Subway develop products by asking
the requirement of the customers such that the fresh ingredients are used which
build trust among the customers.
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DIFFERENCE FROM OTHER ORGANIZATIONS
The food industry is comprised of various organizations that have been conducting
their operations at a huge level. Subway has maintained a huge name in the food
industry as they have been offering high-quality fast food products to the customers.
Various organizations have been competing with Subway in the market such as
McDonald's, KFC, Starbucks, Domino's Pizza, Burger King, Wendy's, Chipotle, and
Tim Horton's. It could be stated that the fast-food market has been highly competitive
and it is vital for the organization to work in a significant manner so that substantial
benefit could be attained in the business. Subway has outlay the competition in the
market due to various factors. The key factors which provide a competitive edge to
Subway against the competitors are diverse products range, high nutrition value,
reasonable price, and high quality.
The products range of Subway is diverse in nature as compared to their competitors
in the market which provide a significant advantage among the customers. There are
huge options available for customers in Subway to order their meal such as
sandwiches, subs, salads, soups, and burger. In addition to this, the customers have
the choice of choosing the content of their meal at Subway which is not available in
other organizations (Subway, 2017). The taste of the products available in Subway is
unique which also reflect them among a large number of fast-food organizations.
It is evaluated that the nutritional value of the products offered by Subway is huge in
comparison to the other organizations. The products possess high nutritional value
and possess low content of fat which is healthy for the customers. In addition to this,
the products offered by Subway are fresh in nature such that the customers would
be experiencing high satisfaction. In comparison to this, the competitors of Subway
have been offering deep-fried food products which are not healthy for the customers
(Teichert et al., 2015). It also results in several consequences to the health of
customers such as an increase in cholesterol, high blood pressure, etc.
The value for the product has been high for Subway products in comparison with the
other organizations. The products of Subway possess high nutritional value and they
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are healthy for the customers. In addition to this, the prices of the products are
reasonable which is effective in nature. The other fast-food organizations have been
offering products which have low nutritional value and high prices which are not good
for the customers (Subway, 2017). Moreover, the high quality of the diver products
range is effective for Subway in maintaining their position in the market and also
gaining the attention of the consumers. It is vital for Subway that they continuously
work for improvement to gain success in the market.
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CHANGE IN POSITION
The market trends have been evolving with time such that it becomes vital for the
organizations that they enhance their existing practices to avail substantial benefit in
the business. Subway has been effectively conducting its business operations due to
the extreme focus on quality and a healthy diet. It has been helpful for the
organization in gaining a substantial increase in their consumer base, revenue, and
profit but in recent time, significant challenges have been experienced in the
business environment. The trends in business have been evolving with time such
that it is essential for Subway that they improve their business practices to position
their products effectively in the global market (Hardy, 2018).
It is vital for Subway that they effectively work on enhancing their business practices
and position in the market to maintain their brand image. It is essential that the
organization should effectively work on certain areas to enhance their position. In
recent time, Subway has undergone various changes in its business operations that
assist them in gaining substantial benefit in the business. The organization has been
working with advanced technology in their operations so that they could offer huge
satisfaction to the customers.
In addition to this, the organization has enhanced the traditional menu system to the
digital menu which provides a different experience to the customers. The digital
menu is quite attractive in nature and it provides a variety of options to the
customers. Further, the transaction modes at the outlets of Subway has enhanced at
a huge level as the cash system is transformed by the digital payment methods. The
customers could utilize digital payment wallets, cards, etc. for completing the
payment. Subway has developed its website and application which helps in reaching
the majority of the customers (Christian and Gereffi, 2018). The organization has
provided an option of booking products through online platforms to the customers
which have increased the sales at a significant level.
Moreover, it could be evaluated that the transformations in the business operations
of Subway have been huge in nature. The organization has focused on enhancing its
business operations with time which has been helpful for them in availing desired
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benefits in the market. Still, the organization needs to work on certain aspects to gain
a leading position in the business environment.
CONCLUSION
The study has helped attain insights regarding the business operations of Subway in
the global market. It is evaluated that the organization has attained substantial
benefits in the business but there are certain improvements which are essential for
the organization. Subway needs to work on certain areas to gain a leading position in
the business. Initially, they need to enhance their human resource such that
adequate training is required to conduct. Further, advanced technology should be
utilized in every aspect of the business so that the customer experience could be
improved at a huge level. At last, the relationship with the suppliers should be
healthy so that quality resources could be availed for delivering high nutritional food
products. Thus, it is essential for Subway to work on certain aspects so that they
could accomplish their desired goals.
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REFERENCES
Choi, H. and Reid, L.N., 2018. Promoting Healthy Menu Choices in Fast Food
Restaurant Advertising: Influence of Perceived Brand Healthiness, Brand
Commitment, and Health Consciousness. Journal of health communication, 23(4),
pp.387-398.
Christian, M. and Gereffi, G., 2018. Fast-Food Value Chains and Childhood Obesity:
A Global Perspective. In Pediatric Obesity (pp. 717-730). Humana Press, Cham.
Hardy, K., 2018. Why Subway Isn't Failing, According to Subway. (Online) Available
at: https://www.qsrmagazine.com/restaurant-operations/why-subway-isnt-failing-
according-subway (Accessed on 8th July 2019).
Levy, D. and Tardiff, T.J., 2018. Measurement of Market Concentration Faced by
Labor Pools: Theory and Evidence from Fast Food Chains in Rhode Island with No-
Poaching Clauses. Available at SSRN 3247932.
Simms, A., 2011. How Subway tops the fast-food chain. (Online) Available at:
https://www.theguardian.com/commentisfree/2011/mar/11/subway-fast-food-chain-
mcdonalds (Accessed on 8th July 2019).
Subway, 2017. Annual Report. (Online) Available at:
www.annualreports.com/Click/24733 (Accessed on 8th July 2019).
Teichert, T., Effertz, T., Tsoi, M. and Shchekoldin, V., 2015. Predicting brand
perception for fast food market entry. Theoretical Economics Letters, 5(06), p.697.
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