MGT603 ASSIGNMENT NO 2 Spring 2014 Idea Solution

SEMESTER SPRING 2014

Strategic Management (MGT-603)            ASSIGNMENT NO. 02

Due Date: 04^TH August, 2014

Marks: 10

Assignment:

Subway is an American fast food restaurant that primarily sells submarine sandwiches (subs) and salads. It is owned and operated by Doctor's Associates, Inc. Subway is one of the fastest growing franchises in the world with 42,070 restaurants in 107 countries and territories as of June 28, 2014. It is the largest single-brand restaurant chain and the largest restaurant operator globally.

Assignment Question:

Being a student of strategic management, you are required to discuss Subway’s market position in the light of porter’s five forces model.                                                                                  

(10 marks)

Note:

Michael Porter's framework derives 5 forces that determine the attractiveness of a market. Porter referred to these forces as the microenvironment to contrast it with the more general term macro environment. A change in any of these forces normally requires a company to re-assess the marketplace. Porter’s five forces are threat of new entrants, threat of substitute products and rivalry among competitors, bargaining power of suppliers and bargaining power of buyers.

You are required to discuss the following points.

Threat of new entrants

¯  Barriers to entry

¯  Switching cost

Threat of substitute products

¯  Buyer inclination to substitute products

Rivalry among competitors

¯  Exit barriers

¯  Product differences

¯  Diversity of rivals

Bargaining power of suppliers

¯  Presence of substitute inputs

¯  Supplier concentration

Bargaining power of buyers

¯  Price sensitivity

¯  Substitute available

¯  Product differentiation

Important:

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