SWOT AND PESTLE

ANALYSIS OF
SUBWAY
PRESENTED BY HIRA, SHAHWAR, NIMRA, AHMED, SAHAR, SARA
 Worth: $10.314
 Factors: Eating healthy and obesity is also an opportunity
for subway
 Co-Factors: It also provide the fresh and customized
sandwich flavor away from the typical Junk food
 Sales: A subway restaurant, on average generates
$422,000 in sales annually.
 ORIGIN:
 The one thing that differentiate subway from its other
competitive fast food chain is the interesting story of its origin
that over where its fans every time.
 Fred Dedication: His dedication towards his dream of
becoming a medical doctor and his consistent struggle and
preference in initiating a sandwich shop is no doubt a
commendable approach.
 Beginning: Subway begins in August 1965 wonder the names
“Pete’s the super subway marines” because of its submarines
sandwich menu specialty.
 Business type: Private
 Industry: Restaurants
 Genre: Fast food
 Founders: Fred Deluca,
 Peter Buck
 Headquarters: Milford, Connecticut, U.S
 Products: Submarine, Sandwiches, Pizzas (some locations),
Salads
 Owners: Deluca family
 Sandwich Shop: The founder of subway is “Fred Deluca”
started off in the food industry through a loan of $100 from a
close friend by opening a sandwich shop at a mere age of
17.
SWOT-What Is SWOT Analysis?

 SWOT Analysis is an overall framework or study used by a

company to identify it's strengths, weaknesses,
opportunities and threats and evaluate it's position in the
market strategically.

INTERNAL FACTORS:-
Strengths Weaknesses
EXTERNAL FACTORS:-
Opportunities Threats
Strengths-Internal Strategic Factor
Franchised Owned:-
 All the restaurants of subway present worldwide are owned
by franchises.
 These franchises are held to responsibly carry out the supply
of pertinent, healthy and fresh raw materials required by
subway.
 These franchises avail subway's restaurants with the most
befitting ingredients/raw materials in accordance with the
standard or norm required by the customers of subway.
 these franchises are verified /certified by subway it self, as well
as, certified by big health agencies such as AMERICAN HEART
ASSOCIATION.
 Customization:-
 Being among the world's to most famous demanded
and well-known food chain, subway get's the winning
streak with their customization strategy.
 For example, subway's sandwiches can be customized
accordingly just as a customer demands.
 A customer's own taste, flavor and texture of a sandwich
all can be customized accordingly in the sandwich
deservingly.
 Health Conscious:-
 Healthy, fresh and low-fat with a large variety of
nutritious food options are in the priority list of subway to
not only meet the "good taste" demand of the
customers but also provide nutritious and vegetarian or
low-fat meal options.
 Having healthy bread with no eggs used in their bread
and sauces is one example of it.
 For the health conscious customers, every meal's fat and
calorie gram limits are kept to a healthy extent.
 World Famous Brand Name:-
 Subway has gained a massive and famous name with a
huge demand all over the globe.
 Being the world's 3rd largest fast food chain, it's demand
seems to be increasing at an incredibly fast pace.
 It's image has been specifically centered in the eyes of
the world as a high brand food chain with most of it's
customers and demanders as their "high brand loyalists".
Large Population Potential:-
 Subway's most reflective strength is their size and number
of stores and channels. This gives a huge successive
advantage in order of competing with other rival
restaurants.
Weaknesses- Internal Strategic Factor

High Employee Turnover:-

 Due to the low paid job of the subway's employees, at many
times often the performance of the employees does not
reach up to the mark which is required.
 This leads to a high employee turnover and more training of
the staff/employees, which is costly, time-consuming and
overall , a weakness factor for subway.
 If subway has a high turnover of it's employees relative to it's
competitors/rivals, this can majorly effect subway's image in
the eye's of the world.
 High turnover can also lead to a downfall in the productivity
level of subway.
 Out -of-Date Look:-
 In today's world of modernism, where every single thing
is more favored or considered by the public as 'trendy'
or 'modern’, subway is not so up to the mark in this
case.
 Old themed interior of the restaurants does not attract
the eyes of the public that much and this leads to less
preference of the customers.
 OPPORTUNITIES-EXTERNAL
STRATEGIC FACTORS
 The opportunities for subway include experience of
customer by higher level convenience through a
delivery service, by improving their variety in menu
choices. Furthermore, they should use the feedback
from its customers to improve the business.
OPPORTUNITIES

 Increasing demand for healthier food.

 Home-Delivery.
 Drive-thru.
 HYGIENE:
 Subway can become more successful as brand and
restaurant. People are getting more health conscious today's
and it can exploit this.
 HETEROGENEITY\VARIEGATION:
 Subway has only one kind of product i.e SUBS but it needs to
diversify into different kinds and stay in competition.
VEGETARIAN FOODS:
 Subway needs to diversify because mostly customers offers
different kind of meats but lacks in a varied menu as they offer
in menu. Subway needs to diversify it's menu with adding various
kinds of meal options other than only sandwiches and lunch
options. Addition of a much more diversified menu should be
adapted such as, dinner options and more dishes.
 DRIVE-THRU:
 The one of service subway competitors offered is drive through
facility for quick and working people.Subway needs to apply this
in their restaurants as well.
 HOME-DELIVERY:
 Subway should start providing home delivery because
successful restaurants are providing services like home
delivery.
THREATS-Internal Strategic Factor
Following are the threats:
 COMPETITION:
 MC Donald Burger king

 KFC
Competitors are the biggest threat for any
organization the above listed competitors start
providing Low-Fat food option. This can seriously
damage subway's customers base.
 SATURATED MARKET:
 New restaurants.  Attracting local people

 Providing food at low price

 BAD REPUTATION:
 Unhealthy food.

 Bad service\Bad behavior

 CHANGE IN TREND:
 Change in taste

 change in trend.
PESTLE ANALYSIS
OF SUBWAY
POLITICAL FACTORS

 Subway needs to ensure that it abides by the health and safety

regulations laid down by the government and the state in which
Subway unit is operating
 Providing Halal meat in Muslim countries
 Showing the amount of calories in each one of its ingredients
 Health and safety regulations vary country to country boiling down
to its specific policies
 A country places varying emphasis on its health and safety
regulations
ECONOMIC FACTORS

 GDP one of the major factors that almost every business is

vulnerable to and Subway being a fast food chain is not immune
from it.
 Europe because of having a high GDP has more Subway outlets
than any other part of the world
 Major suppliers of Subway Arytza , Lineage logistics and Southwest
baking played a pivotal role in the brands overall bread
improvement efforts
 Also assisting Subway to achieve the specific goal of increasing
whole grain to 51% in a 9 – inch grain wheat bread
 That now accounts for a person’s 100% whole grain requirement in a
foot long sand witch
Social Factors

 The social factors encompass the nation of people who

have busy lives. The people who are busy and never
prefer to cook at home so the increasing number of busy
people impacts subway in a positive way.
 Europe is home to the most workaholic therefore the
trend of dinning out is the highest.
TECHNOLOGICAL FACTORS
 Trends: The growing trend of ordering food while sitting
at homes and in the offices has always accelerated the
pace of order subway received in a day.
 Impacts: The large technology has a very direct impact
on subway and is always a major element to bear in
mind while making any policies for subway.
 Services: For instance, the subway also offer unique
service of browsing thoughts the calories that each one
of its ingredients with loaded so as to validate that they
are eating fresh.
Environmental Factors

 The environmental factors include the changing trend of

global environmental norms.
 The step taken by the world against pollution and promoting
activities like recycling has directly impacted the business
strategies of subway.
 The other environmental factors include the indicatives taken
by the food chain to promote health awareness and other
good norms among people to save people.
 In a nut shell, subway has been expanding it's business in the
whole world.