Published by MBA Skool Team, Last Updated: September 14, 2021
SWOT analysis of Subway analyses the brand by its strengths, weaknesses, opportunities & threats. In Subway SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Subway to benchmark its business & performance as compared to the competitors. Subway is one of the leading brands in the food & beverages sector.
The article below lists the Subway SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Subway SWOT Analysis:
For Subway, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Subway looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Subway :
1. Subway is one the leading fast food chains which has a worldwide brand recognition and high brand loyalty
2. Subway's menu reflects demand for fresh, healthy and fast food, and it offers a wide variety of snacks
3. The company is known to provide hygienic food and a quick service with in-house seating and take away
4. Subway offers a customizable menu where customers can build their sandwiches based on their preference of meat, salads, sauces etc.
5. Franchisee staff training is structured, brief and designed to assure rapid start-up for new employees
6. More than 400,000 people are employed with the company through direct as well as franchise model
7. Subway has more than 30,000 stores which are present in more than 100 countries
8. The annual revenue of the company is around $10 billion
9. The company has a strong advertising strategy via TV campaigns, outdoor media, print ads, digital advertising, online ads and social media engagement to ensure high brand awareness
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Subway SWOT Analysis:
1. Immense competition in the fast food segment means limited market share growth for Subway
2. Franchise management on a global level is a challenge and that can cause business operation issues
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Subway SWOT Analysis:
1. Subway can continue to expand globally and increase its business operations
2. The brand can offer a localized menu depending upon the preferred food in the region of operation
3. Acquisition of smaller food joints can help the brand grow and diversify
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Subway are as mentioned:
1. Threat from other eating joints & restaurants, as they may decline Subway's market share
2. Health conscious people avoiding eating fast food
3. Economic recessions and pandemics can lead to loss of customers and thus impact business operations
There are several brands in the market which are competing for the same set of customers. Below are the top 10 competitors of Subway:
Lot of varieties in vegetarian as well as non vegetarian meals
People willing to have a hygienic and delicious non conventional meal at a restaurant
Children and youth from middle and upper class
A healthier, fresher alternative to conventional fast food.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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