Subway SWOT Analysis:

·        
Large number of stores
worldwide
·        
Provide special
customized menu
·        
Extensive market in
non-traditional locations (military basis, hospitals and supermarkets)
·        
Worldwide brand
recognition and strong market position
·        
Low franchise startup costs
·        
Franchise training
provided
·        
Partnership with American
and British Heart Association
·        
Hygienic food and quick
service
 

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

·        
No delivery service
·        
No online presence
·        
Quality issues
·        
High prices compared to
other fast food chains
·        
Inconsistent levels of
customer service
·        
Low worker payment
·        
Interior design
·        
High turnover
 

·        
Expand in new market
·        
Expand dessert choices
·        
Revise and refresh the
menu to stay up to date with trends in the market
·        
Using social media to
collect customers feedback
·        
Starting online ordering
and delivery services
·        
Increase demand for
healthier food
·        
Introduction of
drive-thru
 

·        
Legal issues
·        
Food contamination
·        
Recession
·        
Competition with other
food ventures
·        
Competitive prices by
other fast food chains
·        
Trend towards healthy
eating
·        
Local fast food restaurants
chains
·        
Saturated fast food
market

 

Walmart SWOT Analysis

·        
Largest retailer in the
world
·        
Innovative technologies
(advance information system, real-time order, and inventory tracking).
·        
Loyalty of customers
·        
Low prices compared to
competitors
·        
Wide selection of
products
·        
Global supply chain
·        
High efficiency of supply
chain
·        
Financial strength
·        
Excellent infrastructure
·        
large customer base
 

·        
Low presence in the
International market
·        
Some of the products have
poor quality
·        
Wide media attention due
to its huge size and the big number of employees (2.3 million)
·        
Thin profit margins
·        
weak HR record
·        
Slow growing e-commerce
 

·        
Expansion in new markets
·        
Growth in the online
·        
Partnership with large
companies providing various services
·        
Expansion in developing
countries
·        
Improvement in human
resource practices
·        
Improvement in quality
standards
·        
improvement in
HR policies
·        
Expansion into the
emerging Asian markets
·        
Partnership with the
local brands in the emerging markets
 

·        
Growing economy can
change people’s preference from low price 
to high quality
·        
Intense competition in
the retail industry
·        
Recession
·        
Small-scale/individual
online selling
 

 

The main goal of this merger is to reduce cost, enhance
performance and increase revenue

–         
Using Walmart as a main
supply chain for subway

–         
Using one distribution
system

–         
Using the cost leadership
strategy that is used by Walmart

–         
Selling Subway products in
special corners in Walmart

–         
Economy of scale

Both companies have large number of stores especially across
the United States, from analyzing Walmart and Subway locations through google
map we found that they have a semi matching in their stores locations. Starting
from this point, there will be a single distribution unit that can cover both
Subway and Walmart which can reduce the costs effectively.

Subway is facing a threat after several cases related to the
quality of their food, chicken and bread that affected their reputation in the
market.