Business Strategy

COMPETITIVE STRATEGY:

Focus Differentiation
Subway exercises the Competitive Strategy of Focus Differentiation. Subway values its customers and focuses on product and service differentiation. Their unique ability to provide unparalleled customer service within this industry has differentiated them from existing competitors, and thus has gained them control of the market segment for the foreseeable future. 

SUBWAY FIVE FORCES:

Bargain Power of Customers:

The Bargain power of customers refers to the influence the customer has over a firm. For subway the Bargain power of customers is medium force. Subway offers fresh products but with a medium to high price which gives the customer the option of going somewhere else to buy similar products. For less price customers can obtain food within a mile from subway.

Threat of Substitution:

The threat of substitutions is referring to the existence of alternative products and how accessible they are to customers. For Subway the treat of substitution is high.  Subway faces many treat on the area of substitution because customers satisfy the same need with different alternatives such as McDonald's, Chipotle, Popeye and other.

Bargain Power of Suppliers:

The bargaining power of suppliers is influence the suppliers have over the firm. Subway’s bargain power of supplier is low because major suppliers will not like to lose Subway as their main account because it promotes freshness.

Threat of New Entrants:

Threats of new entrants describes how vulnerable the particular industry is to the entrance of new competitors. For Subway, the treat of new entrants is medium. Food restaurant can develop new food lines to compete and profit in the organic food industry.

Rivalry:

Rivalry describes the impact existing competitors have on each other within the industry. The power of rivalry over Subway is high because Subway is not the only company that offers fresh ingredients in their sandwiches. Companies like Jersey Mike’s and Jimmy Johns have implemented a healthier system to cater their food.

VALUE CHAIN 
Subways value chain allows the company to follow a low cost strategy model, as well as remain highly competitive in the fast food industry. Subway's first business operation consists of transforming meats to be shipped and collecting vegetables. These processes are completed at Subway farms and Subway factories around the globe. From there Subway begins to distribute their products to their franchises. Subway outsources their shipping process to U.S. Food in order to bring down operation costs, a key factor which allows them to keep their prices competitively low and focus on making sure their products are high quality and at company standards. Subway's operation systems notify distributors when certain menu items are low, this allows distributors to restore menu items before a franchise runs out. Finally, menu items are then crafted and made to order, thus making the process quick and efficient for both the customers and franchise owners. As technology continues to rapidly change Subway continues to adapt their sales and marketing strategy in more innovative ways, examples include social media and phone apps which notify customers of discounts and promotions. For Customer Service, Subway trains there employees to be friendly and immensely helpful at all times. Subway employees are required to assist customers in every aspect of their order process and employees always hold their customers to the highest standards, as Subways number one priority is making sure the customer experience a great one. 

BUSINESS PROCESS

Learning to create a great SUBWAY® sandwich is an easy part, all the employees are trained to have the exactly same quality, dedication and the same process to attend all customers since they get into Subway Store until they leave. All products, as sandwich and salads, are made in front of the customers by employees’ hands and with the specific way that customers desires. The whole business process for Subway restaurant when interacting with people is about seven steps, and usually managers train their employees to have the seven steps done no more than 2 minutes per customer. The steps are the followings:

1^st Step: Sub or Salad. When the customer gets into Subway restaurant, employees have to welcome them saying “Hello, welcome to Subway, what would you like?” Depending on what they ask is how we proceed. We have the option whether a Sub or a chopped salad. Followed by if they desire a six inch or a foot-long sizes.

2^nd Step: Bread. We have to ask what type of bread they want. Subway has many different choice of baked fresh bread for customers. The choices are Italian bread, Italian Herbs and Cheeses bread, Wheat bread, Honey Oats bread and Flat-breads.

3^rd Step: Flavor. After cutting the bread, the next step is the flavor, customers choose from the menu which can be eggs, different meats, or only veggies. We have to give what customers specifically want.  Also, we have to ask if they want it toasted or cold, if they want it toasted, we have to put it on the toaster.

4^th Step: Cheeses/Extra. Customers can add their own personal touch. They can add any cheese that subway provide, as American, Provolone, Mozzarella, Swiss, or Cheddar. They also can add any extra meat, however, employees have to inform them that it would be charge extra.

5^th Step: Veggies. Subway is characterizing for having fresh vegetables, customers have the option to add veggies to their sandwich with no extra charge, customer can get all the veggies they want, as the same way they do not want anything. Employees have to give the specific amount of veggies they want.

6^th Step: Sauce/Wrap.  Subway has twelve different dressing and customers can add their favorite dressing to their sandwich or they just ask for sauce that goes with their sandwich. There is not limit for dressing, there is no extra charge for it. After putting all sauces, we just wrap it up.

7^th Step: Payment. This is the last step where we finish with the customer. Employees have to offer them others products, if they want drinks or chips to make it a meal, or just cookies or any other product. To conclude and before charging them, we have to repeat their order to make sure if it is what they wanted and what they have, and then just pay. All employees always have to give thanks to the customers for consume Subway products.