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Now is the time to select a strategy, but before you identify a specific strategy to implement, you have to create a few alternatives to choose from. During the previous week you identified the generic strategic direction for Subway . It is now time to identify specific alternative strategies for implementation. Based on the strategic direction that you identified in Week 4 (differentiation strategy), create 2-3 strategic alternatives, i.e., actual strategies that the organization should pursue. Keep in mind that these alternatives MUST fit under the umbrella strategic direction you identified last week.
Previous week work - Selected Differentiation strategy for Subway. Subway’s main logo is “Eat Fresh”. This encourages and delivers the strengths Subway has with healthy fresh, customizable, fast food. Offering healthy subs is often preferred compared to fast-food chains such as McDonalds and Burger King. To establish the best strategy, a comparison of the IFE and EFE is analyzed. The Internal Factor Evaluation includes weighing a list of key factors that are internal within the company. This can include employees, leadership and corporate cultures. The External Factor Evaluation (EFE) includes weighing a list of key factors that are outside the control of the company: branding, customer loyalty, range of products and health concerned customers. Focusing on the EFE’s Subway has endless possibilities to increase performance along with profitability. The uniqueness of Subway’s “fresh” taste, they can benefit from the differentiation strategy. Having fresh ingredients, and customizable meals based on each customer sets them apart (Kokemuller, Unknown). It tells us that although Subway is on track with it's "eat fresh" logo, to set it apart from others, it needs to ensure that they continuously acknowledge that others competitors are up and coming. Everyone is learning that people are becoming more and more health conscious. For Subway to stay on top their game, they need to add more diverse items to their menu to keep their customers coming back for more.
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