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Subway Prezi - Championship

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Fanny Morin

on 1 November 2012

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Transcript of Subway Prezi - Championship

Prezi presentation
about 's Business Model An entry to the 2012
Global Business Design
Championship An academic submission to:
Professor Benoît Montreuil
GIE-6087 Global Business Design
(FSA, Laval University, Québec, Canada) A creation of Fanny Morin MBA in International Management Noémie Bond MBA in International Management Subway through the time... Key Facts about Subway A Global Presence Competitors




Threats Competitors Threats Partly, Subway is benefiting from a market for fast food, already worth billions! 1965 Bridgeport, Connecticut, USA 17-years -old Fred DeLuca
opens a submarine sandwich shop named "Pete's Super Submarines" with a loan of 1000$ from its partner, Dr. Buck, a family friend. 1966 The partnership opens its
second location
+
Introduction of the "familiar
bright yellow logo" They "realized that MARKETING and VISIBILITY were going to be key factors in the success of the business."

"The next step was to FORMULATE A BUSINESS PLAN that outlined the Subway brand's goals." 1974 Connecticut Starting point for franchises:
First Subway's franchise 1975 Introduction of the BMT
-In 1975, it means "Biggest, Meatiest and Tastiest" 1976 Launched the "One Foot" in length Subway Sandwiches Pete's Super Submarines became 1980 First time Subway introduced an item in its menu that was not a submarine sandwich: a salad! 1984 Subway opened its first international location:
Bahrain in the Persian Gulf 1989 At this time, every state in USA has at least one Subway location

Opening of 3000 stores just this year! 2000 Subway introduces a customer, Jared Fogle in an advertising campaign to put emphasis on the importance of healthy food

Introduction of its ''line of fat-free sandwiches." Subway's Headquarters
"Additional regional and country offices, employing about 1,000 people in total" Located in Milford, Connecticut Source: Subway Student Guide (2010) Source: Subway Student Guide (2010) Source: Common Logik Corporation (2012) 37,857 restaurants in 99 countries 2,833 restaurants in Canada Leader at sustainable development level in the fast food industry GLOCALIZATION
Basic menu everywhere
Cultural and religious adaptation for products "Subway is the undisputed leader in fast, healthy food" Fresh and quality food everyday Ranked "number one" by consumers in the "Most Popular", "Top Service" and "Health Options" for food brands in 2010 "People are our greatest asset" "SUBWAY® brand serves nearly 2,800 sandwiches and salads every minute" Example CREATION INNOVATION

ENABLING TECHNOLOGIES

EXPERTISE AND CORE COMPETENCIES

KEY PROCESSES www.torex.com Key Component of Subway's Success Products Healthy
Fresh
Customization
"Gold Standard" policies + Promotion "What-you-see-is-what-you-get"
Efficient use of technologies
Competitive green marketing
(CSR) Marketing and Visibility 1. Good market positioning 2. Efficiency of the supply chain 3. People and Customer oriented 4. Innovation: continuous adaptation 5. Do not wait, apply online! Subway,
in a niche market Succeeded to introduce HEALTHY and LOW CALORIE food in its menu
in the "Fast Food" industry Source: wikinvest Source: Subway.com source: Subway.com Source: subway.com Source: Subway.com Source: Subway.com
With economic slowdown, people have less money to spend so they will choose a less-costly option offered by products of lower quality. Substitutes: Convenient shops, mid-range restaurants and health food shops, pizzerias, hot dog stands, kebab houses, Chinese take-out. Price wars: Customers can have alternatives to select their option: they can choose alternatives with lower costs, when deciding for a quick lunch Financial crisis: Chief competitors include McDonalds, Burger King, Pizza Hut and Taco Bell

Quiznos Sub represents also another alternative competing with Subway since it is in the same niche market. Source: smartcanucks.ca Source: Aptivo Business University Source: Financial news Source: Cutest blog-'A day in the life of' Source: Seattle weekly blog References to Sebastien Caisse's thesis References It is now the time to take a look at
's Business Model Benefits Credo - What does Subway believe in? "Healthy People in a Healthier World" CHARACTER Subway's Mission "Delight every customer so they want to tell their friends - with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience" Subway's Vision "Be the #1 Quick Service Restaurant (QRS) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience." HOW will
Subway realize its mission and vision? Through its
commitment Subway's Core Values Subway's Culture 1. Entrepreneurial Spirit 2. Diversity 3. Giving Back Franchise model that :
Empowers individuals
Creates opportunities
Stimulate economic development
On-going training (staff development)
Provide the sense of pride
- Leading the franchisee to open and operate its own Subway restaurant" Cultural richness is promoted
"People are our greatest asset"
No tolerance for discrimination
Promote the "representation of women and minorities in its workforce" Based on : "race, sex, sexual orientation, gender identity, creed, religion, color or national origin" "Support charities and philanthropic organizations through corporate donations and sponsorships"
Fight for different causes, such as childhood obesity or heart disease, by supporting and making partnerships with community groups (ex: American College of Cardiologists Goal Core Values Family Sense of community
Building bonds/relationships Teamwork Open communication
Shared goals Opportunity Entrepreneurial spirit
"Ever-growing Subway community" Other Important
Values Corporate Social Responsability (CSR) Health Responsability Range of sandwiches with less than 350 calories
Fighting against childhood obesity and heart diseases
Promote physical activities Subway's financial benefits are NOT public


Why?



Focus on products and their quality, on well-managed restaurants and on customer needs


Subway wants
to be the BEST
not the biggest What attracts individual actors ? Offer to customers Offer to franchisees Offer to communities Offer to suppliers Large variety of products: breads, type of submarines,salads, pitas, soups, etc.
What-you-see-is-what-you-get
Order is made in front of them
Opportunity to choose toppings

Nutritional, diet and health information are provided at the counter and on the website

Marketing targeting adults and children Internet offer Customers can send feedbacks or complaints Other products are available for customers! Social medias are used for promotion purposes and to get customers' feedback Relevant information available
What do you want to know? Implication in various charitable organizations

Opening of a franchise helps economic development

Importance of giving back through implication
Ex: Sponsorship of local team sports

Sharing its corporate values Fighting breast cancer Community involvement Low operational level

National and regional support and marketing activities

Complete and on-going training program

Development assistance

Low investment (Initial franchising fee of 15,000$) Subway's major supplier: Independent Purchasing Company Vendors Vendors Vendors Vendors Vendors Vendors Selling to... Selling to... Subway rewards and honors suppliers which demonstrates: Sustainable practices
Support at the efficiency of the supply chain
Cost control
Complete delivery
On-time delivery
... Partners space on its website CREATION INNOVATION

ENABLING TECHNOLOGIES

EXPERTISE AND CORE COMPETENCIES

KEY PROCESSES Innovation Enabling
technologies Expertise
(core
competencies)

Tendencies and trends:
Subway keeps itself constantly updated with market trends.

Depending on the season, Subway will create a new subway reflecting today’s consumption habits and preferences. Ex. the Subway’s BBQ Pulled Pork, the Crab Sub were adapted according to trends and according to the season. Adaptation to preferences

Adaptation to various types of diets.
For example, Subway Restaurants launched Atkins-friendly wraps and salads and adaptation to vegan versions of Subways 2. ENABLING TECHNOLOGIES Order online:
Allowing customers to order online from the menu and having your order ready when you get to your local subway.
  In-store wi-fi: The majority of Subway restaurants currently offer free wireless to customers High-tech softwares: Torex is the latest and fastest growing international technological platform for quick service restaurants and provides Subway cashiers the highest levels of flexibility and reliability. www.torex.com 3.EXPERTISE Source: Subway.com source: Subway.com Source: subway.com Uncommon places Targeted promotion Home grown choice of products Source: Subway.com Source: Subway.com Healthy offer Source: Subway Student Guide (2010) Source: Subway Student Guide (2010) Source: Common Logik Corporation (2012) In the USA, in 2010, consumers' visits at Subway were often above than average.

The segment that visits Subway the most is called Dorms to Diplomas, customers primarily made up of college students. This bracket of clients is choosing Subway for quick, healthy and inexpensive food ''on the go'' STAKEHOLDERS
Subset of clients

Brokers, Customers, Vendors
Franchisor: Doctors Associates Inc

Franchisees: More than 34 250 in 2010

Franchisees' employees

Department teams This chart illustrates the J-curve principle of upward growth for SUBWAY® from 2005 to the end of 2010, SUBWAY® projects to have 34,250 open stores across the globe. Source: Subway Student Guide


Associations/Partners: Doctor’s Associates Inc (DAI)
Franchisor that owns the SUBWAY® service mark. SUBWAY® is a registered trademark of DAI.

Franchise World Headquarters (FWH)
It is a service organization for the SUBWAY® brand. FWH serves DAI and Subway Franchise Systems of Canada, Subway International BV, Subway Real Estate, LLC, Franchise Brands.


Charitable organizations
The American Cancer Society, American Heart Association, Big Brothers/Big Sisters, Conservation International, United Way, the National Foundation for Teaching Entrepreneurship, Multiple Sclerosis Society of America.

Suppliers
Franchisee owned, Independent Purchasing Cooperatives or Companies (IPCs) are responsible for procuring our delicious products and ingredients as well as the equipment, supplies and services used in our restaurants.: Source: Subway Student Guide (2010) Source: Subway Student Guide (2010) Source: Common Logik Corporation (2012) In the USA, in 2010, consumers' visits at Subway were often above than average.

The segment that visits Subway the most is called Dorms to Diplomas, customers primarily made up of college students. This bracket of clients is choosing Subway for quick, healthy and inexpensive food ''on the go''
Market force’s 2010 restaurant industry survey ROLE OF STAKEHOLDERS OFFER CREATION TRUST DYAD ''Could it be that Subway benefited from flying beneath the radar?'' The Guardian-UK
Comparing to McDonalds that became linked to the rise of junk food, to animal rights and environmental degradation, trust in SUBWAY can be fortified by proper nutritional content, fresh products: stakeholders' link to a remarkable trademark. TRUST DYAD Source: Subway.com
References to Sebastien Caisse's thesis In the USA, in 2010, consumers' visits at Subway were often above than average.

The segment that visits Subway the most is called Dorms to Diplomas, customers primarily made up of college students. This bracket of clients is choosing Subway for quick, healthy and inexpensive food ''on the go'' Food Quality
and Safety Renewing "ways of doing things"

Campaign "Fit to Hunger" to "raise awareness of healthier food options to tackle obesity

Adopt sustainable initiatives to reduce its ecological footprint:efficiency
Energy efficiency (ex: efficiency lighting and LED)
Water conservation
Water reduction
Packaging with recycled materials
...
Development of eco-restaurants
LEED certified Continuous nutrition researches
Rigorous and high standards
Suppliers MUST meet Subway's quality and safety requirements Do not wait,
apply online! CAPITAL: SUBSET OF ENABLERS HUMAN RESOURCES SUBSET OF TALENT Customers Key processes 1.INNOVATION Finally... Source: Youtube. "Subway Commercial 1812 Overture" Source: History: eHow Money. "History of Subway Sandwiches Franchise". http://www.ehow.com/about_5031823_history-subway-sandwiches-franchise.html Source: Subway. "Subway FAQs". http://www.subway.com/ContactUs/CustServFAQs.aspx#q2 3) Global presence: Subway Canada. http://world.subway.com/Countries/frmMainPage.aspx?CC=CAN&LC=FRE Source: Headquarters: Subway. "Subway FAQs" Source: Subway. "Explore our world". http://www.subway.com/subwayroot/exploreourworld.aspx Source: Subway. "Why choose Subway?". http://www.subway.com/subwayroot/own_a_franchise/whychoosesubway.aspx# Source: Subway. http://www.freshenergy.com/ Source: Subway. "Our people our communities". http://www.subway.co.uk/aboutus/our-people-communities.aspx Source: Triplepundit. "Subway introduces eco-restaurants". http://www.triplepundit.com/2011/09/subway-introduces-eco-restaurants/ Source: Retail Industry. "Subway Mission Statement - Freshness + Customer Satisfaction = The Exceptional". http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Subway-Sandwich-Mission-Statement.htm Source: Retail Industry. "Subway Mission Statement - Freshness + Customer Satisfaction = The Exceptional". http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Subway-Sandwich-Mission-Statement.htm Source: Subway. "Our commitment". http://www.subway.co.uk/aboutus/our-commitment.aspx Source: Subway. "Our people our community". http://www.subway.com/subwayroot/about_us/Social_Responsibility/OurPeopleOurCommunities.aspx#joy Source: Retail Industry. "Subway Mission Statement - Freshness + Customer Satisfaction = The Exceptional". http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Subway-Sandwich-Mission-Statement.htm Source: Subway. "Environmental Leadership". http://www.subway.co.uk/aboutus/environmental-leadership.aspx Source: Le Monde.fr. "La chaîne de fast-food Subway supplante McDonald's". http://www.lemonde.fr/economie/article/2011/03/08/la-chaine-de-fast-food-subway-supplante-mcdonald-s_1489808_3234.html Source: 2Sustain. "Subway Recognizes Suppliers for Their Sustainability Initiatives". http://2sustain.com/2009/09/subway-recognizes-suppliers-for-their-sustainability-initiatives.html Source: Subway. "Accueil". http://www.pensezfrais.com/#/subway/accueil/ Source: Subway. "Subway Partners". https://partners.subway.com/portal/Login/tabid/58/Default.aspx?returnurl=%2fportal%2fdefault.aspx Source: Subway. "Nutritional leadership". http://www.subway.co.uk/aboutus/nutritional-leadership.aspx Source: Subway. Cartier Street, Québec Source: Subway. Cartier Street, Québec Source: Subway's website. http://www.subway.com/subwayroot/default.aspx Source: Subway. "Contact Customer Service". http://www.subway.com/ContactUs/frmCustomerService.aspx Source: Subway. "SubGear". http://shop.subway.com/substore/subgear/tabid/38/entityname/category/categoryid/1/sename/apparel/default.aspx Source: Facebook. "Subway". http://www.facebook.com/subway?fref=ts Source: Twitter. "Subway". https://twitter.com/SUBWAY Source: Subway's website. http://www.subway.com/subwayroot/default.aspx Source: Source: Franchise Direct. "Subway".
http://www.franchisedirect.com/directory/subway/ufoc/915/ Source: Subway. "Our people our community".
http://www.subway.co.uk/aboutus/our-people-communities.aspx Source: Subway. "Our people our community".
http://www.subway.co.uk/aboutus/our-people-communities.aspx Source: Subway. "Our people our community".
http://www.subway.co.uk/aboutus/our-people-communities.aspx Source: Subway. "Franchising FAQs".http://www.subway.com/subwayroot/Own_a_Franchise/FranchiseFAQs.aspx Source: Subway. "Franchising FAQs".http://www.subway.com/subwayroot/Own_a_Franchise/FranchiseFAQs.aspx Source: Subway. "Facts and history".http://www.subway.co.uk/business/franchise/facts_and_history.aspx Source: Subway's website Source: Subway. "Sustainable sourcing".
http://www.subway.co.uk/aboutus/sustainability-sourcing.aspx


2Sustain. "Subway Recognizes Suppliers for Their Sustainability Initiatives". http://2sustain.com/2009/09/subway-recognizes-suppliers-for-their-sustainability-initiatives.html
Aublet, Emmanuel, ‘’Faire respecter le concept, animer, développer le réseau et préparer l’avenir’’ Les Echos (2012) http://www.lesechosdelafranchise.com/franchise-subway/e-aublet-subway-faire-respecter-le-concept-animer-developper-le-reseau-et-preparer-l-avenir-27850.php
Caisse, Sebastien. ‘’Tetrahedral business design framework’’ Faculté des études supérieures de l’Université Laval, (2008)
Chandon, Pierre. ‘’Restaurant Health Claims: Lower Calorie Estimates and Higher Side-Dish Consumption Intentions’’. CHICAGO JOURNALS. (2007) http://www.jstor.org/stable/10.1086/519499
Doctor’s Associates Inc, ‘’Subway Student Guide’’ http://www.subway.com/ContactUs/StudentGuideEdits.pdf
E-How Money. "History of Subway Sandwiches Franchise". http://www.ehow.com/about_5031823_history-subway-sandwiches-franchise.html
Facebook. "Subway". http://www.facebook.com/subway?fref=ts
Franchise Direct. "Subway". http://www.franchisedirect.com/directory/subway/ufoc/915/
Franchise Speak. "SUBWAY Success Secrets", http://www.franchisespeak.com/subway-success-secrets
Harris, Jennifer. Shwartz Marlene, ‘’Yale Rudd Center for Food Policy and Obesity, Evaluating Fast Food Nutrition and Marketing to Youth’’ http://fastfoodmarketing.org/media/FastFoodFACTS_Report_Summary.pdf
Le Monde.fr. "La chaîne de fast-food Subway supplante McDonald's". http://www.lemonde.fr/economie/article/2011/03/08/la-chaine-de-fast-food-subway-supplante-mcdonald-s_1489808_3234.html
Liutu, Riina ‘’Subway’s market research’’ University of Applied Sciences Business Administration Lappeenranta Corporate and Financial Law (2010) https://publications.theseus.fi/bitstream/handle/10024/23519/Liutu_Riina.pdf
Retail Industry. "Subway Mission Statement - Freshness + Customer Satisfaction = The Exceptional". http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Subway-Sandwich-Mission-Statement.htm
Subway Canada. http://world.subway.com/Countries/frmMainPage.aspx?CC=CAN&LC=FRE
Subway, ‘’Latest news’’ http://www.subway.com/subwayroot/about_us/pressreleases.aspx
Subway, ‘’Own a franchise’’ http://www.subway.com/subwayroot/Own_a_Franchise/default.aspx
Subway. "Accueil". http://www.pensezfrais.com/#/subway/accueil/
Subway. "Contact Customer Service". http://www.subway.com/ContactUs/frmCustomerService.aspx
Subway. "Explore our world". http://www.subway.com/subwayroot/exploreourworld.aspx
Subway. "Facts and history".http://www.subway.co.uk/business/franchise/facts_and_history.aspx
Subway. "Franchising FAQs". http://www.subway.com/subwayroot/Own_a_Franchise/FranchiseFAQs.aspx
Subway. "Nutritional leadership". http://www.subway.co.uk/aboutus/nutritional-leadership.aspx
Subway. "Our commitment". http://www.subway.co.uk/aboutus/our-commitment.aspx
Subway. "Our people our communities". http://www.subway.co.uk/aboutus/our-people-communities.aspx
Subway. "Our people our community". http://www.subway.com/subwayroot/about_us/Social_Responsibility/OurPeopleOurCommunities.aspx#joy
Subway. "SubGear". http://shop.subway.com/substore/subgear/tabid/38/entityname/category/categoryid/1/sename/apparel/default.aspx
Subway. "Subway FAQs". http://www.subway.com/ContactUs/CustServFAQs.aspx#q2
Subway. "Subway Partners". https://partners.subway.com/portal/Login/tabid/58/Default.aspx?returnurl=%2fportal%2fdefault.aspx
Subway. "Sustainable sourcing". http://www.subway.co.uk/aboutus/sustainability-sourcing.aspx
Subway. "Why choose Subway?". http://www.subway.com/subwayroot/own_a_franchise/whychoosesubway.aspx#
Subway. ‘’About us-Home Grown’’. http://www.subway.com/subwayroot/About_Us/default.aspx
Subway. http://www.freshenergy.com/
Subway Laguna Hills. "Nutrition Information".http://www.subwaylagunahills.net/nutrition-information/
Subway's website. http://www.subway.com/subwayroot/default.aspx
T Basset, Mary ‘’Purchasing Behavior and Calorie Information at Fast-Food Chains in New York City, 2007’’ http://ajph.aphapublications.org/doi/pdf/10.2105/AJPH.2008.135020
Triplepundit. "Subway introduces eco-restaurants". http://www.triplepundit.com/2011/09/subway-introduces-eco-restaurants/
Twitter. "Subway". https://twitter.com/SUBWAY
Wiley, John and Sons Inc, Business Model Generation: A handbook for visionaries, game changers, and challengers (2010) Source: Franchise Speak. "SUBWAY Success Secrets".
http://www.franchisespeak.com/subway-success-secrets Source: Porter's 5 forces for Fast Food Market Industry www.scribd.com/doc/76126337/64/Porter’s-5-Forces Source: Subway Market Research, https://publications.theseus.fi/bitstream/handle/10024/23519/Liutu_Riina.pdf Source: Business Model Generation, John Wiley and Sons Inc. Sources: Subway.com
Sebastien Caisse's thesis on the Tetrahedron Source: esri Source: Subway.com Source: Subway's student guide Source: Subway.com Source: Subway.com Source: Subway.com
References to Sebastien Caisse's thesis Credible global standards contribute to the engagement of stakeholders and reinforce their commitment to continuous improvement of Subway's trademark. Source: Sustainable sourcing
Subway.com Food Quality & Food Safety
Sustainable Sourcing Practices
Local Sourcing
Animal Welfare
No Forced Labor and Human Trafficking
Streamlining Supply Chain Source: Subway. "Sustainable sourcing". http://www.subway.com/subwayroot/about_us/Social_Responsibility/SustainableSourcing.aspx Source: Subway Laguna Hills. "Nutrition Information".http://www.subwaylagunahills.net/nutrition-information/ Source: Subway. "Facts and history". http://www.subway.co.uk/business/franchise/facts_and_history.aspx Source: Subway's website. "Order online".
http://www.subway.com/OnlineOrdering/default.aspx Source: Business Wire. "SUBWAY® Chain to Implement Torex Quick Service Restaurant POS in Over 30,000 Restaurants Worldwide"
http://www.businesswire.com/news/home/20090112005762/en/SUBWAY%C2%AE-Chain-Implement-Torex-Quick-Service-Restaurant
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