Ch. 2 - Strategic Planning for Competitive Advantage

 Competitice Advantage - means that a firm has a marketing mix that the target market sees as better than a competitor's mix

 SWOT analysis - that is, the firm should identify its internal strengths(S) and weaknesses(W) and also examine external opportunities(O) and threats(T).

 

Strengths:

• (Scale) Subway Restaurants is one of the leading submarine sandwich franchise based in the world.(20,532 restaurants all over the world).
• (Customization) Customers are able to choose great degree of healthier meals.
• (Price) Low startup Costs.
• (Place) Subway has positioned itself in places like hospitals, churches, schools and popular retail stores like Home Depot and Wal-Mart.
• (Food) The food menu of the Subway reflects the high demand of healthy and fresh food which is also fast.

 

Weaknesses:

• (Decor) The interior design of the oultets often outdated.
• (Service3-1) Service commitment is not consistent from store to store.
• (Service3-2) There are no drive through availability and child entertainment.
• (Service3-3) Limited seating in most stores and menu.
• (Staff) Employee turnover is high.
• (Food) No desert options for gluten-free or diabetic diet.

Opportunities:

• (Invest2-1) The company can invest more to expand its business in the international market. (additional global stores)
• (Invest2-2) The company can update interior and look to encourage dine-in.
• (Service2-1) Instroduction of drive-thru.
• (Service2-2) Home meal delivery.
• (Customer) Changing customer habits and new customer groups.
• (Food3-1) Good nutriton geared to all ages. (children and seniors can enyoy)
• (Food3-2) Help to control childhood obesity.
• (Food3-3) Increasing demand for healthier food.

Threats:

• (Competition3-1) Competition has better quality of meat.
• (Competition3-2) Competiton decreases their prices.
• (Competition3-3) The company faces serious threats from large fast food chains in the world like Wendy's, KFC, McDonald, etc.
• (Service) Lack of drive-through means patrons could go elsewherefor quicker service.
• (Bad economy) The current economic recession is another threat for the company as it directly affects the consumption and spending power of the consumers.