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(Assignment)~Threat and Opportunities of Subway


Organization: Subway 



Executive Summary

SUBWAY is a Fast food restaurant which been founded at 28 August 1965, it was about 54 year history until nowadays; the founder was Fred Deluca and Peter Buck but now the SUBWAY is belonging to Deluca family. It was an American privately held restaurant franchise which is selling the submarine sandwiches and salads. SUBWAY was a very fast-growing franchise, it has already built up 42 thousand stores which are located in more than 100 countries in the world but most of it is located in the United States. SUBWAY headquarter is set up at Milford, Connecticut, US. Till today it can say as the largest restaurant operator in the world.

Subway has offered various type of ingredient that enables the customer to make customization to their food as how the customer likes or wants. This is very attractive to the customer who likes the new thing or the customer who are still doing sport or taking the gym. This is because the ingredient that includes in the menu of the Subway not lack of a healthy ingredient.  Another talk, the operation cost of the Subway is also low, and this makes there was an easy starting of franchising, and this makes the spreading of the Subway become easily.



Marketing Situation: JAPAN

In this marketing plan, my target market was Japan. Based on the data from the internet of the healthiest country 2019, Japan has got a 91.59 off the health grade, temporary second place in the healthiest country ranking 2019. Japan has a population of 126,860,301 people in the year 2019; all of them are the potential customer of Subway in this plan.

We are also known that Japan is a busy country; most of the Japanese are also already used for this. Based on the online data, Tokyo Japan is in the first place in the world ranking top 10 busiest countries.  Japan also has the longest working hour in the world, and because of this situation, and a term has appeared which “karoshi” is. This term means death by overworked, and it is commonly recognized by the Japanese.  It is almost every day has Japanese death because of overworked, and the major causes it often because of the stroke or the heart attack.

Other than that, the Japanese are really like to eat rice; you can always see that rice appear on the dining table.  To them, rice is the most important crop in Japan. In Japan, Japanese have created a lot of the ingredient to eat with rice such as natto, egg, dumplings, plum even you can see Japanese eat “Ramen” with the rice.


Threats:

Nowadays, the market for fast food is about to saturate. There is a lot of the fast-food industry such as Mac Donald, KFC, and Subway and so on. There is an intense competition between them, this makes that there is no more space for the new fast food industry to join the market.

Other than that, people are more prefer to eat tasty food much more than just a portion of healthier food. Simply said, the trends are moving toward the tasty food, and far away from the healthier food. This was a piece of bad news for the fast-food industry which is main the healthy food Subway.  This situation will make Subway lose the customer and the happen of decreasing of the sales, and this will properly bring to another consequence, which is Subway is harder to keep a fresh ingredient every day for the customer and finally will lose this sign, healthier food.

There is also another threat which is lawsuits. In before, there are some lawsuits happen against the Subway which is Subway has served a portion of unhealthy food to the customers, this has gone against the sign of the Subway. After the case happens, it brings a huge influence to the reputation to the Subway, and makes subway loss the trust of the customer, and the customer is less likely to try to eat at Subway.



Opportunities:

Subway should focus to expand its strength which is healthier food. This may attract a lot of the customer of each type such as from vegetarian customer group and gymnasts. As an example, the subway can prepare fresher ingredient, state out of what nutrient have in what ingredient in the menu to help the customer understand what they need easier.

Besides that, as what I state in the weakness, freedom to the customer to customization has made the work complex and increase the serving time. As the solution of this problem, Subway may come out with the drive-thru services which are open up a new counter to serve the customer who are rush in time.

Other than that, some of the customers like to eat at home; maybe for them is more comfortable or other reason. For this type of customer, Subway may come up with home meal delivery services.



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