Introduction:
Subway is an American famous global brand that was founded by 17 years old Fred DeLuca with one of his family friend, Dr, Peter Buck. The first SUBWAY opened in Wallingford and has since expanded in 111 countries, with 44,350 restaurants, by providing jobs for 300,000 people worldwide (SUBWAY, 2015). Its ability to make easy to prepare fast and healthy sandwiches and salads in front of the customers has made the business undisputed leader. Although Indonesia is the 4th country with the highest population, Subway has not entered the market yet. At below, it will be analysed the PESTEL analysis and the most important impacts on the company; a cultural analysis; marketing mix; 5 forces analysis by providing potential problems and threats for the entrance of Subway in Indonesia. Finally it will be …show more content…
Also, the employees should be Indonesians, since it is suggested to speak Indonesian language (Jakarta Globe, 2015).
Environmental:
The most crucial aspect that should be taken into consideration is business environment. A business environment includes the competitors that constitute a serious factor of the company’s success in a country. In Fast Food industry there are two types of competitors, the global and local brand ones. In Indonesia the strongest competitors are the local ones, since they manage to offer exactly what Indonesians looking for. They fully adapted in their lifestyle and tastings. In this way they have decreased promotion costs because they base on mouth-to-mouth advertising method (Hsien, 2013). However, KFC has also managed to reach a good position in Indonesians’ preferences (Bland,2013).This means that KFC, as a global brand, has made some important changes in the way that operates and this gained the trust of
Subway is an American famous global brand that was founded by 17 years old Fred DeLuca with one of his family friend, Dr, Peter Buck. The first SUBWAY opened in Wallingford and has since expanded in 111 countries, with 44,350 restaurants, by providing jobs for 300,000 people worldwide (SUBWAY, 2015). Its ability to make easy to prepare fast and healthy sandwiches and salads in front of the customers has made the business undisputed leader. Although Indonesia is the 4th country with the highest population, Subway has not entered the market yet. At below, it will be analysed the PESTEL analysis and the most important impacts on the company; a cultural analysis; marketing mix; 5 forces analysis by providing potential problems and threats for the entrance of Subway in Indonesia. Finally it will be …show more content…
Also, the employees should be Indonesians, since it is suggested to speak Indonesian language (Jakarta Globe, 2015).
Environmental:
The most crucial aspect that should be taken into consideration is business environment. A business environment includes the competitors that constitute a serious factor of the company’s success in a country. In Fast Food industry there are two types of competitors, the global and local brand ones. In Indonesia the strongest competitors are the local ones, since they manage to offer exactly what Indonesians looking for. They fully adapted in their lifestyle and tastings. In this way they have decreased promotion costs because they base on mouth-to-mouth advertising method (Hsien, 2013). However, KFC has also managed to reach a good position in Indonesians’ preferences (Bland,2013).This means that KFC, as a global brand, has made some important changes in the way that operates and this gained the trust of