Essay on Jimmy John's Competitive Forces Model

2075 WordsMay 6, 20099 Pages
Jimmy John’s Introduction The first Jimmy John’s was created in 1983 in Champaign, Illinois, by Jimmy John Liautaud. Liautaud founded Jimmy John’s on the idea of providing the gourmet sandwiches for a low price. The first Jimmy Johns was run out of a garage with used equipment, and without an ice machine for the drinks because there wasn’t any room. Liautaud grew interest in his sandwiches by giving out free samples to people around town, especially college students. As word spread about his sandwiches, Jimmy John’s began to gain acclaim and began to make money. (Gibbs, 2005) 1985 marked the opening of the second Jimmy John’s. Since then the sandwich shop franchise has continued to flourish with over 690 stores currently open…show more content…
With Jimmy John’s reputation for quick service, the most notable substitute would be any of the many fast-food restaurants available. Second would the option of a sit-down restaurant. Also, a final substitute would be the option for consumers to purchase food from a grocery store and eat at home. The fast-food restaurants that would most likely serve as substitutes would be places like Burger King, McDonald’s, Taco Bell, and Wendy’s. These restaurants offer relatively inexpensive food like Jimmy John’s, and also cater to the customer that is in a hurry. Jimmy John’s holds a decided advantage over these fast-food burger and taco restaurants with their offer of fresh ingredients and a healthier sandwich. Sit down restaurants may be able to compete with Jimmy John’s in their ability to offer a more nutritious meal, but they do not offer some of the other amenities that are available at Jimmy John’s. A sit down restaurant will not offer the quick turnaround of a freshly made sandwich or be able to match the price of a Jimmy John’s meal. Consumers who purchase their own food and make their meals at home will be able to compete with Jimmy John’s on both price and nutritional value, but will not have the speed or ease of ordering a sandwich from Jimmy John’s. These three substitutes offer viable options to the customers in Jimmy John’s target market, but Jimmy John’s

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