Subway Sandwich Phase 1: Identifying ProblemSubway is a franchise sandwich store that has been established in the market since 1965. They have been famous for their classic sandwich combinations and also their customization of sandwiches that meets customer's specific needs. Currently Subway is the largest Sandwich franchise in the world and has a total of 30,272 Stores in 87 countries around the world. Thailand is one of the countries that hold a Subway Sandwich franchise license.In Thailand, there are currently 23 Subway stores located in the major large metropolitans and tourist areas, which include Bangkok, Pattaya, Phuket, Chiang Mai, Samui, and Krabi. Here is a chart showing ...view middle of the document...
(www.world.subway.com).In Thailand, Subway sandwich shop is separated to two different types of stores; Store based (Moderate - Higher Cost) & Counter Based (Lower Cost). Firstly Store based, which is located in busy areas such as Sukhumvit or other chosen area. The store based subway stores have their own spaces and buildings, mostly located next to the road. These stores are mostly operated 24 Hours, where some shops are merged with other coffee stores such as Coffee World. Secondly, Counter based, which are mostly located in department stores and trade shows venue such as Muang Thong Thani. The Subway stores will have their own well decorated booth located in a certain part of the department store, where their services are identical to Store based but with a smaller space. These stores are operated according to the venues operating time; an example is Siam Paragon, which opens at 10:30 AM - 10:00 PM.Competition:There are a large number of competitions in this industry, where Subway is considered as a Fast food restaurant. In the fast food industry of Thailand, direct competitors such as McDonald, KFC, MOS Burger, Au Bon Pain, Pizza Hut and other small sandwich stores, can pull customers away from Subway. Indirect competitors such as normal restaurants can easily be substituted, where consumers can choose to eat other things rather than Subway Sandwich.Currently the market of the fast food industry of Thailand is very competitive, where large amount of chain stores are opening in every potential areas and new department stores and venues. This allows Subway (Who started its business in 2003) to hold only a small amount of market share in this industry.SWOT Analysis: ThailandStrength:Healthier Alternative Fast Food - FreshStrong brand name & imageNationwide Chain Room for growthConvenient - Remains at its core value of Fresh and Taste good - Freshly madeWeakness:Low accuracy on orders - Consumers may not get what they want.No direct communication and link between different stores & Head quarters.Slow growth in Thai Market - Should expose more through more distribution.Opportunities:Low Start up Cost - More Franchises purchased.Health conscious consumers are on the rise - More consumers are eating Healthy.Room for Expansion throughout Thailand - Small amount of Stores in the Thai market.Threats:Increasing amount of Fast Food stores.High competition & substitution product.Business Partners:In Thailand, Subway partners with few suppliers for their inventories and products. First, as a sandwich store, ingredients for the sandwich are the most important inventory that Subway must have. Havi Food Service is the major ingredients provider for Subway in Thailand (Interview, 2008). Basic ingredients such as, Vegetables and Meat products (Ham / Bacon / Beef) are supplied by Havi Food Service. Other key products such as "Turkey from the U.S, beef from Australia, Cheese from New Zealand, and some Bread from Malaysi...
