Case Study #1 – Subway Sandwich Shop Analysis Case Study One – Subway Sandwich Shop Situation Analysis A situation analysis is an honest valuation of the opportunities and potential problems facing a prospective or existing company. Through analysis a deeper understanding of an industry, competitor and possible options can be examined. Subway Sandwich shops early history roots can be traced back to the summer of 1965, with a $1,000 investment a new venture was born. Fred DeLuca and Dr. Peter Buck worked hard to expand their business by 1974; the duo owned and operated 16 units throughout the state of Connecticut. (Subway History, 2006). A turning point for the partners was 1974, at this juncture the duo decided to take
"They are striving to do something to make it seem that they are not responsible for it or part of it (Mokhiber and Weissman, n.d., Subway: The New King). Subway Restaurants has been smart capitalizing on being a healthier alternative to burgers. Subway was smart throughout the low carb craze they continued to introduce products which would appeal to health conscious consumers. [U.S. sales at the top 25 sandwiches and bakery concepts were $16.7 billion in 2005. That is up 13% from 2004, according to a new report from Chicago-based Technomic Information Services. By comparison, sales grew 8.8 percent in 2003. Restaurant industry experts say the major chains were able to avoid big fallout from the carb craze because they were quick to respond with wraps, salads and other low-carb options] (Dallas Morning News, 2006). According to a Time Magazine article, "heightened competition from the likes of Subway, which has dethroned McDonald's as nationwide champ in total stores with 13,101, has added to the McWoes. Subs and other custom-made sandwiches are growing 12% a year as a fast-food category vs. a paltry 2% to 3% for burgers" (Eisenberg, 2006, Can McDonald's Shape).
Market Growth [By 2020, the U.S. population will add between 50 and 80 million people—all becoming part of the food system. Based on an increase of 50 million food customers, U.S. food expenditures are projected to rise 26 percent