Subway Value Chain Analysis
Subway-Porter Value Chain
Introduction: SUBWAY was started 47 years ago in the year of 1965 by Fred Deluca. Subway is the market leader in the sub and sandwich shops offering a healthier alternative to traditional fast foods. Subway’s annual sales exceeded $ 6.3 billion, while countless awards and accolades have been bestowed its chain over the past 47 years. Subway has more than 33,500 units worldwide whilst its rapid growth has attracted many investments and brought it many competitors such as KFC and Burger king . Recent increase in the health conscious customers increased the share of subway in the market. Subway is the largest chain of fast food restaurants in the world, which has around 1200 restaurants more than Mcdonald’s. The Subway concept of serving fresh made sandwiches on fresh baked bread, made right in front of customers, the way they like it has proven to be a winning marketing strategy in. Subways are famous for their high level of response to their customers. This special quality earned a lot of loyal customers to the enterprise. They have also become popular with health conscious customers in Europe who are searching for higher quality fast food options. Subway’s low initial investment and ability to fit into unusual spaces are other reasons for their success. Without the need for heavy equipments for cooking a Subway restaurant is the perfect business for the small spaces and tight real estate of Metropolitan cities. Their regional office makes the franchise start –process simple and easy. Europe is currently wide open for development. As their brand awareness is rapidly growing, more and more people are becoming aware of Subway as a great tasting lunch option and also as a great way to start their own business within their community.
Now let us study about the value chain in subway using Porter model.
Porter’s model consists of 2 elements basically. They are 1. Primary elements, 2. Secondary elements.
The primary
Introduction: SUBWAY was started 47 years ago in the year of 1965 by Fred Deluca. Subway is the market leader in the sub and sandwich shops offering a healthier alternative to traditional fast foods. Subway’s annual sales exceeded $ 6.3 billion, while countless awards and accolades have been bestowed its chain over the past 47 years. Subway has more than 33,500 units worldwide whilst its rapid growth has attracted many investments and brought it many competitors such as KFC and Burger king . Recent increase in the health conscious customers increased the share of subway in the market. Subway is the largest chain of fast food restaurants in the world, which has around 1200 restaurants more than Mcdonald’s. The Subway concept of serving fresh made sandwiches on fresh baked bread, made right in front of customers, the way they like it has proven to be a winning marketing strategy in. Subways are famous for their high level of response to their customers. This special quality earned a lot of loyal customers to the enterprise. They have also become popular with health conscious customers in Europe who are searching for higher quality fast food options. Subway’s low initial investment and ability to fit into unusual spaces are other reasons for their success. Without the need for heavy equipments for cooking a Subway restaurant is the perfect business for the small spaces and tight real estate of Metropolitan cities. Their regional office makes the franchise start –process simple and easy. Europe is currently wide open for development. As their brand awareness is rapidly growing, more and more people are becoming aware of Subway as a great tasting lunch option and also as a great way to start their own business within their community.
Now let us study about the value chain in subway using Porter model.
Porter’s model consists of 2 elements basically. They are 1. Primary elements, 2. Secondary elements.
The primary