Debate: Agree or Disagree: Discuss which generic business-level strategy is best suited to keep the company you selected competitive. Offer supporting rationale for your explanation.
Subway is a growing fast food restaurant, with locations all over the globe. In fact, this is one of its greatest strengths, giving Subway access to a broad demographic of customers. Another one of Subway’s major strengths is the customization available to its customers, making Subway equipped to service a variety of customers as well (Jurevicius, 2013). As Subway continues to grow, so will their brand, increasing the number of Subway customers. The main weaknesses for Subway are the high employee turnover and the quality/service inconsistencies. High employee turnover leads to high administration costs, as Subway has to constantly interview and hire new employees. The quality and services inconsistencies will make it harder for Subway to keep their current customers and bring in new customers, as many customers will expect all Subway’s to offer the same level of quality foods (“Why Subway”, 2016).
The best generic business-level strategy for Subway to remain competitive is the cost leadership strategy. The cost leadership strategy is about attracting a broad range of customers while keeping their prices low (Mastering Strategic Management, 2014). Subway would not be able to offer the quality needed to use a differentiation strategy, and would not be able to sustain itself in a narrow market. Subway will be able to keep their prices low by utilizing economies of scale and buying supplies in bulk (Mastering Strategic Management, 2014). Subway offers a broad range of food such as subs, salads, soups, and cookies which may appeal to many different types of customers. While Subway may not offer the highest quality of food, customers accept the quality available due to the low price of Subway’s food. However, low price does not mean low quality, an issue that Subway needs to constantly monitor. Lastly, Subway has numerous locations all around the world, Subway is able to service a large customer range, which is essential for a cost leadership strategy.