Subway Innovation Report

Ansoff Matrix is formulated on the basis of four market factors that directly affect the business of the company. It helps the company to determine these four factors and formulate their market and business strategies that further help them to increase their product line and business in the market place. Therefore, it is important for Tesco to focus on Ansoff Matrix to increase their working effectiveness (Taylor, 2011). These factors include,

Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a

The food industry in the UK is a multi-billion pound industry that is mainly dominated by a few competitors such as McDonalds, Burger King, KFC and Subway. Most of the food sold in these fast food restaurants is unhealthy, which is becoming a huge concern as there are many people dying of obesity and other health related problems. This is one of the key social factors facing the fast food market at the moment.

The story of the foundation of the first Subway restaurant started in 1965 by the 17-year-old Fred DeLuca who, seeking to earn money for college, decided to take a $1000 loan and opened a submarine sandwich shop that eventually grew into the number-one restaurant chain in the world. The young man was willing to earn some money to have

For this assignment, you will research the innovation architecture of at least three companies that are well-known for successfully supporting a culture of innovation. Write a 1,500-word paper that addresses the following:

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

EXECUTIVE SUMMARY This report provides an in-depth analysis of the conduct of a market research project exploring customer expectation, satisfaction and behaviour in relation fast food restaurants. Particular attention is paid to Subway restaurants outlining the key strategies needed in order to increase popularity and therefore visitor numbers.

Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.

Subway’s first restaurant was opened in Bridgeport Connecticut in August 1965. Their goal at the time was to serve a high quality product by providing excellent customer service. One of their key approaches to success is to keep a low operating cost with a great location to grow their business. Nowadays, Subway is the world largest submarine chain with more than 40,000 restaurants in 105 countries (Subway, 2013). Coca-Cola was founded in 1886 by pharmacist Dr. John Pemberton who wanted to create a distinctive soft drink. The majority of the company was sold to Asa Candler who took the

The success of Subway started in 1965, when Fred Deluca took an advice from family friend Peter Buck, to open a sandwich shop to earn more money and to pay for his education. The first Subway branch opened in Bridgeport, Connecticut. Their target was to open 32 restaurants in ten years,

Subway, the largest franchise in the world, uses various promotion methods. Subway uses mass selling as their primary way of advertising. Since the target market is large and scattered over 98 countries, this is the easiest way for Subway to target their products. They announce their promotions using TV ads, radio ads, newspapers, and online ads. Subway also uses publicity as a form of advertising. Jared Fogle, Billy Blanks, and Michael Phelps are all great examples of this. We all know Jared as the overweight college graduate who lost 245 pounds by eating Subway sandwiches three times daily, Billy as the fitness guru known for the Tae Bo videos and Michael, superstar Olympian who loves the meatball and

Innovation is normally used to denote the process that takes place when a product or a process is developed, from idea to market; the concept of invention only denotes the process that takes place when new ideas or solutions are generated. Baumol (2002) argues “is it possible to have lots of inventions and still lack innovations. Nevertheless, inventions are a necessary precondition for innovation”.

Taking on board the enterprising ideas the franchisee puts across would essentially be the franchisor wasting effort and money in the perfecting of their pre-set method. This is especially the case with larger, more established franchises such as Subway and McDonalds, whereby every task is responded to in a set way and is quantified to the smallest factor. An example of this is when changing the uniform at McDonalds in 2012, it cost over £1.52 million in the UK alone due to the vast number of employees (Weiss 2012). From cleaning the floors to dealing with food complaints, even the smallest change in the franchisors technique requires a great amount of communication and control, but is also a timely and therefore costly exercise. This then reflects the reluctant attitude to established Franchises when considering the great cost and risk involved in the context of someone entrepreneurial. The franchise already has the fine details of the business set into its own convention; entrepreneurial individuals only cause a constant battle with the franchisor due to the desire for change and sometimes, change for change’s sake.

The benefits of standardisation, as well as the risks should be understood. A top down standardisation of concept precludes the bottom up learning that is necessary to adapt to dynamic markets. Moreover, it is the franchisees - who are close to customers, markets, and employees - who have the most intimate information about changes in demographics, markets, and customer tastes that are most likely to affect the future direction of the business. Yet, these people are precluded from innovating or customizing the concept to experiment or take account of local and/or changing market conditions.

• What measures could Burger King do to dethrone McDonald’s as well as hold off the challenge of a number of other chains that were growing in size and competitive power?