When the founder of the Subway Restaurant,respected Mr Fred DeLuca with his partner Dr. Peter Buck opened the first shop in Bridgeport,CT in 1965,this company has already become a strong and energetic single entity among all the well-known competitors,its growing trait exists in a total of close to 35,000 units located in 98 different countries.In fact,such a scale of development, not just a simple number, it shows the subway broad market presence, and the ability to explore the market, and that this is a huge advantage even such a fast-food giant McDonald's did not have.
For Subway,grounded in a such large global background including economics environment,the firm is limited by many ...view middle of the document...
Secondly,the top customer service is so necessary to sustain customer satisfaction in a high level.In order to deliver standardized but customized and supportive understanding and information to customers.the firm provides a training during a period of time.The training objective is included in these franchisees and their working processing.
Last thing is the ability to continuously finding supervisor location.We should know,this is the most creative and extraordinary advantage among other competitors.To choice about location,it is no longer limited in traditional form,such as commercial downtown and it can be located in the appliance store in Brazil, an automobile showroom in California, a zoo in Taiwan, and a Goodwill store in South Carolina.After the spread of this definition,the “non-tradition”will become “tradition”.
In next,with these core competencies,the firm can develop its own vision and mission and then the formulation of some strategies to achieve,maintain and develop these core competencies.Besides that,firm also need some international strategics to to pursue and maintain its strategic competitiveness.
Q1. Explain Subway’s core competencies that could be lead to the development of its competitive advantages. (10marks)
Core competencies means resources and superior capabilities that are sources of competitive advantage over a firm’s rivals.
Competitive advantages are defines when a firm implements a strategy that creates superior value for customers. Competitors are unable to duplicate it or find too cost to imitate it. Competitive advantage are very important for a firm to achieve strategic competitiveness and above-average returns. To be better understood and analyze the Subway’s core competencies that could be lead to the development of its competitive advantages this text will focus on the internal analysis.
If firm achieve core competencies,the two tools are to test simultaneously:the Four Criteria of Sustainable Competitive Advantage and the Value Chain Analysis.
The internal environment consists of resources, capabilities and core competencies. The resources can be divided into tangible and intangible parts and the aim of this analysis is to discover the core competencies and to get the competitive advantages. There are three core competencies for Subway such as, a high-quality product, excellent customer service, and continuously finding superior locations for its stores.
In 2007, Subway introduce the chain’s Eat Fresh, Live Green initiative. Their top priorities is to ensure the food safety and food quality (Subway Web page, n.d.). Their goal is to serve food that consistently meets the highest quality and safety standards from the time it is grown, harvested or caught, to when it is put into a Sub or salad in their stores. To ensure that the food serve to customers is always fresh and sustainably produced, Subway have well...