Subway Strategic Managment

Subway Strategic Managment

  • Submitted By: axd06u
  • Date Submitted: 05/03/2009 2:59 PM
  • Category: Business
  • Words: 316
  • Page: 2
  • Views: 827

Sustaining excellence is hard and ensuring that organisations are resilient is difficult. In 2005, a study in the UK showed that the average organisation only lasted 12 years; further showing the difficulty keeping a long enduring successful business on track. Therefore, in order for Subway to create lasting success, Fred DeLuca had to implement strategies to facilitate the process of expansion on a global scale. In December 1984, the Subway chain tested international waters when it opened its first unit in the Middle Eastern island nation of Bahrain. With its proven success, a short while after the organisation started generating in Iceland, Poland, Nicaragua and China. The chains expansion plans have progressed at a phenomenal rate. Besides its high-profile presence in its home market, the US, Subway first looked at global expansion in the UK and Germany. The organisation found the UK particularly receptive to its product, with currently over 400 units in the UK and Ireland and with sales topping $92 million in 2004. Germany is also on target with the recent announcement of opening its 200th outlet. Despite the diversity of cultures, Subway has opened up to countries such as Belize, Luxembourg, Thailand, Romania and Hungary. In 2005, Subway’s international growth strategy was to focus on “high potential” countries where it already operates in. A “high potential” market is based on population density, political and economic stability, availability of disposable income among targeted demographics and a willingness to accept quick-service restaurants. After calculating the chainwide growth figures around the world, we can understand better the success of effective strategising to tackle the organisation internationalisation. With the opening of about 48 units per week worldwide, this translated to about seven new restaurants per day or one every three and a half hours. We can now fairly say Subway’s strategy and implementation to tackle the...

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