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Case Title:

Subway in China

Publication Year : 2005

Authors: Sujatha, Phani Madhav

Industry: Retailing

Region:China

Case Code: MES0017

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Subway, the world's largest sandwich chain entered China when the fast food business in the country was witnessing a huge growth. But Subway learned that establishing a strong presence in China was not an easy task. The Chinese were alien to the American way of ordering and eating a sandwich and at the same time were aware of the rising obesity concerns in the country due to high calorie Western fast foods. To familiarise the Chinese to sandwiches, Subway had to provide printed signs to explain the processes of ordering a Subway sandwich. Also Subway faced formidable challenges establishing and managing the franchises.

Pedagogical Objectives:

  • To study entry and expansion strategies followed by Subway in China, and problems associated with the fast food business in China
  • To discuss the critical success factors in the highly competitive and vastly complex Chinese fast food market.

Keywords : Subway sandwiches; Chinese fast food industry; Market Entry Strategies Case Study; Jim Bryant; Bread culture; Entry and expansion strategies; Competition from McDonald’s; Franchising in China; China’s growing middle class; Menu customisation; Obesity concerns

Contents : 
Introduction
Subway in China
Reasons for Increasing Popularity of Fast Food
Subway’s Support to Franchisees
Subway’s Menu in China

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