Swot Analysis Of Subway

Introduction
The Subway is an American fast food restaurant which core selling product is submarine sandwich. Over the years, Subway has become the largest single-brand restaurant chain globally that provides a healthy alternative for people who are seeking a balance of nutrition, taste, and value.
Swot Analysis
Strength
• Marketing and promotional strategies.
The Eat Fresh For $5 All Day promotional strategies will attract student and working adult. Students have limited spending power, a set meal of $5 will sure to attract their attention. (Subway, News Bites)
• Healthier alternatives for fast food.
Subway offers subs which have lower calories, fresh and nutritional ingredients. Fast foods have always been seen as unhealthy food. With a healthier choice available, consumers are able to make different choices.
• No restriction of sandwich customization.
With different varieties of meats, vegetables and sauces subway have, customer is able to customize sub that matches their taste. It gives customer space to be creative to play around with the great degree of customization.
• Low start-up costs.
While the numbers depend on many factors, such as location and size of the restaurant facility, the costs range starting from US$130,000 which includes the initial franchise fee of US$10,000 for the first outlet and subsequent franchise purchase for the next outlet(s) is US$5,000. (Subway, FAQ section)
Weakness
• Service standard are inconsistent.
Due to large scale of franchising, services quality throughout it stores may varies. Customer may experience good service at store A but experience total different service in store B.
• Unhappy Franchisee
Too much Subway franchise stores open within the neighbourhood area cause strong competitio...

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...ng power of buyer - High
Generally, consumers rarely hold a very high bargaining power. In this case, their bargaining power is limited to the possibility of choosing other restaurant to satisfy their needs. If you are not satisfied with one option, you can go with the next. This is the case since many suppliers of fast food exist.
Threat of new entrants – High
It is very easy for someone to start up his own fast food business. The entry barriers are quite low. Capital required for setting up a fast food business is relatively low depending on the size of it. Many fast food suppliers, whether they are grill bars, hotdog stands, kebab houses or bakeries, are privately owned and thus serve to prove the point that it is not that difficult to set up one’s own business within the fast food industry. However, the success of these businesses naturally varies significantly.