Subway SWOT Analysis 2021

Subway SWOT Analysis 2021

SWOT Analysis of Subway focuses on weaknesses, strengths potential threats, opportunities, and weaknesses. Subway is among the biggest fast-food chains in the world. 

Strengths and weaknesses in Subway’s SWOT sub-brand are internal as well as risks and opportunities. are external elements.

SWOT Analysis can be described as a valid management tool that allows businesses such as Subway to assess their performance as a business in relation to its competition and industry.

Subway is an established American fast-food chain serving sub-sausages, also called “Sub.” Subs and vegetables are the most popular items on the menu. Subway is the fastest-growing chain around the globe. 

subway swot analysis

In 112 countries, Subway has more than 44850 restaurants. It is the biggest single owner of a restaurant chain and also the largest restaurant operator. 

The company was founded in 1965 with the help of Peter Buck and Fred DeLuca. Subway’s headquarters are located in Milford.

Company Background

Key Facts
Name Subway
Founded August 28, 1965
Logo Subway logo
Industries served Fast food restaurants
Geographic areas served Worldwide
Headquarters The U.S.
Current CEO Fred DeLuca
Revenue $ 16.2 billion (2010)
Profit N/A
Employees N/A
Parent Doctor’s Associates, Inc.
Main Competitors McDonald’s Corporation, Burger King Worldwide Inc., Yum! Brand Inc., Wendy’s Company.

Strengths Of Subway 

subway swot analysis

  • A lot of subs personalization. Customers always like to have a choice so the more options they have to choose from their purchases, the happier they are with the experience. Subway is more superior to other fast-food chains when it comes to offering the option of customizing meals.
  • The largest fast-food chain of restaurants worldwide by the number of restaurants. Currently, the company operates 38,181 locations across 99 countries, far more than McDonald’s or any other fast-food chain.
  • Strategies for marketing and promotion. Subway employs superior methods of marketing and promotional techniques to increase and attract its customers. One of the most effective of Subway’s promotional campaigns was to offer feet long at $5. This was an unofficial standard of pricing for Subway.
  • A selection of healthy meals. Subway offers a variety of low-calorie fresh, nutritious, and fresh food items that you won’t get at other fast-food chains or at the very least, not to such as a degree. Subway’s uniqueness is that its Subway product is in keeping with the current trend to eat healthy food.
  • Alliances With Britain as well as the American Heart Associations. Subway has received certifications from both associations that prove that it offers healthy meals and is a significant reward and separates the company from other fast food establishments.
  • Each restaurant is operated by franchisees. Subway doesn’t own any of the restaurants it operates, which means it is less prone to risk and is able to focus its efforts on marketing, and expanding the franchise.
  • The cost of starting a business is low. One of the reasons for the rapid increase in the number of Subway shops is the low cost of starting. The Subway stores are smaller and have less expense for leasehold improvements as well as equipment.

Weaknesses Of Subway

subway swot analysis

  • The interior design of outlets is often sloppy. Subway restaurants lack the design and style that invites everyone to stay for a while and makes you be more comfortable than the restaurant of the competition.
  • Employee turnover is high. Subway Sandwich Artists job is a low-paying and low-skilled job. It leads to low efficiency and high turnover that increases the cost of training and increases the overall cost of Subway.
  • Services do not always match between stores. The business struggles to ensure uniform service quality across its stores, consequently, a service offered in one store might please one customer while the other could not.
  • A lot of control of Franchisees. Despite the fact that Subway is unable to guarantee consistent quality across its stores, it has excessive control over franchisees. This is accomplished through contracts that are more favorable towards the franchisor. A good example of such a high control is taking over franchisees’ restaurants when the first one struggles to keep the doors operating.

Opportunities Of Subway

subway swot analysis

  • Growing demand for healthier foods. It’s an opportunity on which Subway is already expanding and is able to further launch low fat, salt-free, and healthier subs.
  • Delivery of meals to homes. Subway could exploit the opportunity to deliver food at home, and thus increase its accessibility to customers.
  • The changing habits of customers and new customer segments. Changing customer habits reflect new requirements that must be fulfilled by businesses. So far, Subway has only one variant of restaurants, and it is not comparable to its closest competitor McDonald’s that attempts to the previously untapped segments of customers through the introduction of McCafe, McExpress, and McStop.
  • The first drive-thru restaurant to be introduced. McDonald’s already offers only drive-thru eateries This is a fantastic chance for Subway to leap.

Threats Of Subway

subway swot analysis

  • Fast food markets are saturated in advanced economies. The fast-food market in developed nations is already crowded by many fast-food chains and is already showing to be a danger to Subway because it is difficult to expand in advanced economies.
  • The trend is towards healthier eating habits. Only part of Subway’s menu is healthier of food, while the rest menu is high in salt, has a lot of calories, and comes with soft drinks. People who are concerned about their diet and health might prefer other options instead of Subway.
  • Fast food local to you chain restaurants. Local fast-food restaurants offer healthier options and menus that are a true representation of the local cuisine.
  • Changes in currency. Subway receives much of its revenue from foreign operations. The earnings must be converted to dollars, which can impact the profits of the business particularly when the dollar appreciates against other currencies.
  • Legal actions for Subway. Subway has been involved in and even had to settle a few lawsuits over the years because of their poor policies on franchisee management. The cost of lawsuits is high, they are long-lasting and can damage the reputation.

Weighted SWOT Analysis of Subway

Given the previously identified shortcomings of the SWOT analysis/ matrix, the corporate management has decided to assign the weightage of each of the strengths and weaknesses of the company. 

They also consider the likeliness of events that will occur in the near future and the impact they can be on the performance of the company.

This technique is known as a weighted SWOT analysis. It’s better than basic SWOT analysis since using weighted SWOT analysis Subway managers are able to focus on the most important elements and ignore the less crucial ones. 

It also eliminates the long list issue which is when organizations make an extensive list, but none of the elements are considered to be important.

FAQ

What is Subway’s SWOT analysis?

SWOT Analyzing Subway concentrates on the strengths, weaknesses potential threats, opportunities, and weaknesses. Subway is among the largest fast-food chains across the world. Strengths and weaknesses in Subway’s SWOT sub-brand are internal to the company as well as risks and opportunities. are external variables.

What is Subway’s competitive advantage?

Subway’s competitive advantage Subway is its manual operation in the fast-food industry. Manual operation is the main benefit of Subway. The bread as well as the sauces, vegetable dishes, or even the meals customers can decide for themselves.

What is the USP of the subway?

People seeking an easy meal can stroll into any outlet on the subway and have a sandwich, that is packed with nutrients. This way, the company is able to establish its own market niche in towns in India. What is the USP for the sandwich is the nutritious and healthy sandwich offered is priced at a reasonable price.

How does Subway market its products?

Subway makes use of the concept of mass-selling as their main method to advertise. Since their market is vast and spread across more than 98 countries it is the most efficient method for Subway to market their products. Subway promotes its products using advertising on TV, radio newspapers, as well as advertisements on the internet.

How many subways are there in the world?

Which Subway establishments exist around the world? The global Quick Service Restaurant Subway is responsible for 41,600 locations across the globe in the year 2019, in comparison to 42,431 outlets in the year prior. The global decrease in units also shows up in the country where Subway is headquartered.

Why is Subway so successful?

The basic operation of a Subway establishment, its reputation for good quality, low-fat menu choices, and the convenience of not having to require fryers or grills make it a perfect location for locations that aren’t traditional which, in addition to bringing the delicious food we serve to more people and provides more potential business possibilities for.

What is the use of Subway?

subway, also known as subway tube, metro or underground railway system, is utilized for transporting large numbers of passengers in the suburban and urban zones. Subways are generally built under the city streets for easy construction, but they could make shortcuts, and in some cases traverse under rivers.

Why is it called a subway?

What is the reason for it being what it is called Subway? Initially named for Subway was named for Dr. Peter Buck, Pete’s Super Submarines changed to “Pete’s Subway” in 1966 and two years later it became called simply “Subway.” By 1974, Subway had 16 shops within all of Connecticut.

Conclusion  

After a thorough review of the SWOT analysis of Subway, we’ve come to the conclusion that Subway is the largest fast-food chain in the world.

restaurant brand. Increased market saturation, competition, and the changing trend are just a few of the major problems. 

Subway must expand its customer base in addition to diversifying its offerings to maintain its position in the market.

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