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Porter's Five Forces Analysis

An analysis on Subway

Joyce Senorin

on 1 November 2012

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Transcript of Porter's Five Forces Analysis

Bargaining Power of Suppliers Potential Threat of Substitutes Bargaining Power of Buyers Threat of New Entrants Relatively low pressure Medium to High Pressure Low to Median Pressure Median to High Pressure The main ingredients include
- Bread
- Lettuce
- Tomato Suppliers mainly would not
want to lose Subway as their ingredients are always in demand Many may prefer fast food
alternatives to Subway, alternatives
such as:
- McDonalds
- A&W An individual buyer may cause pressure on Subway
Quiznos, a competitor, has larger subs
Arguably, Subway offers lower prices
Distinct kinds of subs offered
Offers to make your own subs
Large customer base = limited customer bargaining leverage Relatively low entry barriers
No consumer switching cost - if anything, cost is lower May perceive that making subs is an easy task Capital requirement is not as high However, subway is also a brand
Significant market share
Loyal customers Ideas Big and.... ... small Intensity of Rivalry High Pressure Large industry size = many competitors
Main competitor is Quiznos Quiznos offers other snacks
Many other sub brands
Bob's sub
Viet subs Subway has a competitive advantage since it allows customers to make their own subs Porter's Five Force Analysis: Subway Ethics of Marketing ... small Business & Management Jeremy Ethier, Rajneet Pannu, Joyce Senorin
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