Internal Environment of Subway

The internal environmental factors that influencing the Subway’s function / decision are divided into two components of strengths and weakness.

The strength components are Subway has positioned itself in places like hospitals, churches, schools and popular retail stores like Home Depot and Wal-Mart which makes the start-up cost of franchises low. Because of such great strategies the company has become the leading sandwich franchise world-wide in a very short period of time. Subway is known to be a company that offers healthy sub’s sandwich that are preferred and are much better as compared to food items offered by other fast-food chains like McDonald’s. The food menu of the Subway reflects the high demand of healthy and fresh fast-food. To add to its image further it’s partnered with the American Heart Association. Also the marketing and promotional strategies adopt by the company are an example of the positive focus on demand, consumer preferences, innovative trends and product leveraging. Subway currently has more stores in the United States than does McDonald’s which adds to its strengths.

The weakness components are the change is good in moderate amounts; however the company must be careful of not believing that it must continually change its offerings in order to remain the market leader. Too much change too soon can cause a company to lose favour with customers and Subway has already shown signs of too much change, altering its menu multiple times in the last five years. The decoration and the look of the franchises seem to be old and outdated. Service commitment is not consistent from store to store. This could be related to staff as the turnover rate of the employees is very high which explains why they lack motivation. Other weaknesses include a small menu list, an increasing operational cost of franchise etc.