Essays on Subway Systems Australia Case Study

Download full paperFile format: .doc, available for editing

The paper 'Subway Systems Australia' is a perfect example of a Management Case Study. With the rapid increase in the growth of globalization and technology in the business sectors, managers must make the market research and development one of their top agendas (Reid & Bojanic 2009). Kotler & Armstrong (2010) argue that product and development, diversification, positioning are some of the strategies managers must rethink so as to make the organizations become profitable. One of the sectors that experienced growth in a number of market players in the fast-food industry. The IBISWorld (2014) report indicates that fast food lifestyle is turning out to be a trend and common as more individuals eating lifestyle has penetrated the suburban areas and cities of Australia.

One of the market players, Subway Systems Australia has realized it is complex in satisfying the ever-changing customer needs without developing new unique products. In light of the information, this essay analyzes Subway Systems Australia SWOT, identify an appropriate strategy and target market into which it can introduce a new product. 2.0 SWOT Table With the changing business environment in the Australian fast food industry, managers must re-evaluate their company’ s internal and external environment come up with an appropriate strategy to gain a market advantage (Pitta 2010, p. 132).

This involves maximizing the firm’ s strength, reducing weaknesses and strengths, and capitalizing on the opportunities. Nguyen (2005) claims that Subway Systems Australia’ s capability of staying as one of the tops of market ranking restaurants is attributed to its internal environment and its intention to control its external environment. Subway Systems Australia’ s situation analysis can further be illustrated through SWOT analysis. Strengths Weaknesses Strong brand because of global presence Healthy and hygienic foods Customizable menu packages Highly diversified products Highly qualified staff Several outlets causing a lack of control Negative brand recognition Large company network which is difficult to control Opportunity Threats Developing new brand healthier foods Increasing home delivery and take away foods Adoption of technology Intense competition The fluctuation of foreign currencies Consumer and health consciousness 3.0 Findings 3.1 Explanation of SWOT analysis table 3.1.1 Strength Subway Systems Australia is one of the strongest brands in the Australian fast-food market.

Currently, the company is ranked third-largest fast-food restaurant in the market with a market share of 8.8% after McDonald's Australia Holdings (15.3%) and Yum!

Restaurants Australia (9.3%) (IBISWorld 2014). Its strong status is supported by the fact that Australia has turned into to be the second-largest market of Subway's outside North America (Subway 2014). This restaurant is the biggest single-brand chain both in Australia. Its status as a strong brand has in the past helped the marketing team make the company and products well known. Mccarty (2006) contends that the company’ s product submarine sandwich is recognized in terms of its value creation and satisfaction so far, as fast foods are concerned. The menu provided by the company reflects the need for health, fresh, and fast foods. Based on this, the Subway Systems Australia brand has benefited significantly from the growing health consciousness of the consumers (Nguyen 2005).

IBISWorld (2014) maintains that while the other competitors have inclined towards unhealthy choices, Subway Systems has led the change to healthier alternatives. The company is considered one of the hygienic fast company offering quality and quick service. Offering healthy fast food for a hygienic and healthier food can be regarded as a brand value strategy for Subway (Mccarty 2006).

This has been able to improve the image of Subway Systems Australia. It communicates a message to its clients that the company is positioned as healthy and fresh food (Mccarty 2006).


Donaldson, S 2014, Subway Takes Chemical Out of Sandwich Bread after Protest, ABC News

Entrepreneur 2014, 2013 Top Global Franchises, Viewed on 15th April 2014

Helpguide 2014, Healthy Fast Food: Tips for Making Healthier Fast Food Choices, Viewed

on 15th April 2014

Howard et al. 2008, Severe obesity: Investigating the socio-demographics within the extremes of

body mass index, Obesity Research & Clinical Practice, 2(1), 51–59.

IBISWorld 2014, IBISWorld Industry Report H4512: Fast Food Services in Australia, Viewed

on 15th April 2014

Kotler, P. & Armstrong, G 2010, Principles of Marketing, 13th (Global) ed. Boston, Pearson

Education, Inc

Mccarty, M 2006, Fast Food Market Forecast - The Subway Example of Strategic Product

Positioning, Viewed on 15th April 2014 &id=735770

Nguyen, M 2005, Subway plans a revolution against its competitors, viewed

on 15th April 2014 3feb2005

Pitta, D.A 2010, Product strategy in harsh economic times: Subway", Journal of Product &

Brand Management, Vol. 19 no. 2, pp.131 - 134

Reid, R.D & Bojanic, D.C 2009, Hospitality Marketing Management, 5th ed, John Wiley and


Subway 2014, Facts and History, viewed on 15th April 2014

Yankelovich, D & Meer, D 2006, Rediscovering Market Segmentation, Harvard Business

Review: 1–11.

Download full paperFile format: .doc, available for editing
Contact Us