Subway Restaurant - External Environmental Analysis - Example

The report starts with the introduction of the company which includes its products. Its current and future challenges are analyzed as well as external forces (political, economic, social-cultural, technological, environmental and ecological) and its implication on the company. Subway’s internal analysis is also done which consists of the value chain, financial and SWOT analysis and its implication on the company discussed.

Analysis of the industry in which Subway operates is also analyzed using Porters’ five forces (bargaining power of buyers, rivalry among competitors, bargaining power of suppliers, threats of substitute, and threats of new entrants. The key success factors that Subway needs to succeed in the industry are discussed and its strategic group analyzed.

The company’s short-term and long-term objectives are also looked into. The proposed competitive strategies needed to improve the company’s achievement use Porter’s Generic strategies and growth strategies using Ansoff’s product strategies.

Finally, the proposed timeline of activities and budget is implemented for its sustainable growth in the industry.

• 1 Overview of Subway
  • 1.1.1 Company Introduction

Subway was founded in 1965 by Fred DeLuca in Connecticut, USA and now owned and operated by Doctor’s Associates, Inc. It sells salads and submarine sandwiches also called subs. It has now grown into a multi-billion pound business in 102 countries with 39,200 outlets through franchising (Subway, 2013). It is the largest submarine sandwich chain in the world and the second-largest restaurant operator in the world with Yum! Brands leading.