Assignment 3 – Group presentation

Global perspective in Management

Student Name Student ID % Contribution

Vu. Kieu Anh S3891546 25%

Truong Dang Nhu S3893218 25%

Nguyen Le Khanh Linh S3891523 25%

Nguyen Thi Ngan Giang S3878798 25%

 Slide Content

1. Background 4. Supporting Theories

2. Current Situation 5. Reccomendations
3. Issues 6. References

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01. BACKGROUND
3
 TIMELINE

First opened in Connecticut, called Pete’s Subway opened first store in

Super Submarines (Lewis R 2017) Vietnam (T.D 2020)
(BrandsLogo 2021)
2010
1965

1968

The restaurant name

Fred DeLuca and Peter Buck was changed to Subway
 (Lewis R 2017) (Inside Retail Asia 2014)
4
(Myers D 2020)
 “
MISSION STATEMENT
“Delight every customer, so they want to tell their friends -
with great value through fresh, delicious, made-to-order
sandwiches, and an exceptional experience.”
(Writer S 2020)

5
 ACHIEVEMENT

“44,000 SUBWAY franchises in over 110 Brand value of Subway in 2020 is 13 768
countries and territories worldwide” million U.S. dollars (S.Lock 2021)
(Leadem R 2016)

6
02. CURRENT
SITUATION
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 VIETNAM’S MARKET

o Vietnam is home to the world famous

“Banh Mi” and it is the pride of
Vietnamese culture (T.D 2020)
o The median disposable income was
US$3,822 per household in 2016 and was
predicted to grow to US$179 billion in
2021 (PWC 2018)
o Revenue in the Bread segment
amounts to US$4,350m in 2021
(CAGR 2021-2025).
o Highly fragmented market with
sidewalk “Banh Mi" and chain of
traditional “Banh Mi" shops.

(PWC 2018)
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 PRODUCT

High price tag Low recognition

(Subway Vietnam Facebook 2020) (Nhung N 2015)

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 PRODUCT

o Subway hold 2.8 percent of

the market share in Vietnam
(T4’s research team 2021)
o Approximately 2 times more
expensive than “Banh Mi"
from bread chain (one
Subway’s Complete Bread
costs 35.000 VND
while “Banh Mi" only
costs 15.000 - 20.000 VND) 
(T4’s team research 2021)

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 COMPETITORS

Banh Mi Chains Local Banh Mi 

(BMQ Vietnam Facebook ) (Banh Mi 362 n.d) (Đi Đâu Chơi Gì 2020)
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03. ISSUES
12
 Hello!

ISSUE 1: TASTE NOT SUITABLE FOR

VIETNAMESE PEOPLE

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 ISSUE 1: TASTE NOT SUITABLE FOR VIETNAMESE
PEOPLE

1. Different types of bread

Subway bread Vietnamese bread

(Wong V 2014) 14 (Mai 2019)
 ISSUE 1: TASTE NOT SUITABLE FOR VIETNAMESE
PEOPLE
2. Ingredients are not Vietnamese favorite taste

2. Ingredients are not

Vietnamese favorite
taste
Subway’s bread - Western style, serve Banh mi Vietnam with grilled meat, pickle,
with ham, cheese, bacon or chicken or pork floss - the Vietnamese familiar
breast taste 
(Foody n.d) 15 (Anh L 2021)
 ISSUE 1: TASTE NOT SUITABLE FOR VIETNAMESE
PEOPLE

2. Ingredients are not Vietnamese favorite taste

“Banh mi” - a traditional

and popular food in
Vietnam

(Vietnamplus 2019)

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ISSUE 2: INTENSE
COMPETITION WITH LOCAL
BRANDS

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 TASTE

o Failed competition
with traditional
flavors
o “Fresh and Healthy"
(Ngoi Sao 2020)
not suitable for
Vietnamese
consumption
standards.
18 (Dentistry 2020)
PRICE

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04. SUPPORTING
THEORIES

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 GLOBAL PERSPECTIVES

o Subway is a global
company
o All management is
under controlled of
home country.
-> Ethnocentric
attitude (Merz Pharma 2020)

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 FRANCHISING

o 50 years of experience in
the franchising field
o New members of the
SUBWAY franchise are
eligible to attend a 2-week
training course at any of
SUBWAY training centers
around the world.

(Subway n.d)
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 FRANCHISING

o Compared to other
competitors, Subway's
franchise is much lower
than that of other brands 
o Total investment cost in
Vietnam is estimated at:
USD $123,500 to USD
$299,010

23 (Franchise-Vietnam n.d)
 PESTLE ANALYSIS

Political:
× Tax policies 
× Health and safety
regulations 

24 (Franchise-Vietnam n.d)
 PESTLE ANALYSIS

Technological
o Digital menu boards and self-order
kiosks
o Collaboration with delivery service: Now,
GrabFood

Political:
× Tax policies 
× Health and safety
regulations 
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 PESTLE ANALYSIS

Environment:
Legal: o Climate action
o Hygiene in food laws o Sustainable resources and
o Labor laws   packaging  

26 (Viet Nam News 2020)

THE CULTURAL THE CULTURAL
ENVIRONMENT ENVIRONMENT

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05.RECOMMENDATION

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 MOBILE FOOD CART

High demand of
ordering food for
takeaway or pick up
ready-made food 

(Euromonitor International 2020)

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 MOBILE FOOD CART

Improve convenience as well

as reduce costs

(Cart-king International n.d)

(Cart-king International n.d) 30
E-COMMERCE DISTRIBUTION CHANNEL

(Euromonitor International 2020)

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E-COMMERCE DISTRIBUTION CHANNEL

(Euromonitor International 2020)

PwC’s Global Consumer Insights Survey 2018

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 E-COMMERCE DISTRIBUTION CHANNEL

Expanding distribution on food

delivery apps:
o Reach more customers 
o Revenue growth 
o More popular

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 BALANCE THE ORIGINAL TASTE AND LOCAL
PREFFERENCE

Concentrate more in
local flavor based on
ingredients
Create a combination
between Western and
Asian cuisine

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CONCLUSION

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 Reference
BanhmiquePhap, ‘Banh mi que’, image, Bánh Mì Que BMQ, viewed 24 May 2021 <
https://www.facebook.com/banhmiquePhapBMQ>
Bánh Mì Việt Nam 362, ‘Bánh Mì’, image, BanhMi362, viewed 22 May 2021 <
https://www.facebook.com/banhmivietnam362/posts/410023205863752>
Bissett, G 2020, ‘Subway bread contains too much sugar, court rules’, Oral Health, viewed 26 May 2021 <
https://dentistry.co.uk/2020/10/02/subway-bread-sugar-court/>
Brands Logo n.d., ‘Subway Logo PNG’, image, Logo, viewed 26 May 2021 <https://brandslogos.com/fast-food/subway-logo-4/>
 
‘Brand value of the 10 most valuable quick service restaurant brands worldwide in 2020 (in million U.S. dollars)’ 2020, Statista,
viewed 25 May 2021 <https://www.statista.com/statistics/273057/value-of-the-most-valuable-fast-food-brands-worldwide/>
Đào Tạo Bếp Trưởng, 2021, ‘Bánh Mì Việt Nam’, image, Huongnghiepaau, viewed 22 May 2021 <
https://daotaobeptruong.vn/banh-mi-viet-nam>
Fast Food Market Share 2021, ‘About The Fast Food Industry’, chart, Market Share, viewed 26 May 2021 <
https://www.t4.ai/industry/fast-food-market-share>
Foody 2019, ‘Subway Nowzone’, image, Foodyvn, viewed 22 May 2021 <https://www.foody.vn/ho-chi-minh/subway-nowzone>
Leadem, R 2016, ‘20 Subway Facts That May Surprise You’, Entrepreneur, viewed 25 May 2021 <
https://www.entrepreneur.com/amphtml/280957>
Lewis, R 2018, ‘Subway food chain’, Britannica, viewed 26 May 2021 <https://www.britannica.com/topic/Subway-restaurant-chain>

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 Reference
Mai, N 2019, ‘Cách làm bánh mì Việt Nam’, image, WikiLady Blog, viewed 20 May 2021 <
https://blog.wikilady.vn/cach-lam-banh-mi-viet-nam/>
Myers, D 2020, ‘Things You Didn’t Know About Subway’, The Daily Meal, viewed 26 May 2021 <
https://www.thedailymeal.com/eat/things-you-didnt-know-about-subway-gallery>
Nguyen, N n.d., ‘KFC, Lotteria và McDonald’s: Cuộc chiến các chuỗi cửa hàng thức ăn nhanh tại Việt Nam’,
BrandsVietnam, viewed 26 May 2021 <
https://www.brandsvietnam.com/congdong/topic/909-KFC-Lotteria-va-McDonalds-Cuoc-chien-cac-chuoi-cua-hang-t
huc-an-nhanh-tai-Viet-Nam
>
‘Nhuong quyen Subway’ n.d., Franchise Vietnam, viewed 25 May 2021 <
https://franchise-vietnam.com/thuong-hieu/nhuong-quyen-subway>
Shutterstock n.d., ‘World Wide Web’, image, Shutterstock , viewed 25 May 2021 <
https://www.shutterstock.com/search/world+wide+web>
  SubwayVietnam 2020, ‘Menu’, image, SubwayMenu, viewed 26 May 2021 <
https://www.facebook.com/subwayinvietnam/photos/3541026099253996>
‘Subway Vietnam opens fifth store’ 2014, Inside Retail, viewed 26 May 2021 <
https://insideretail.asia/2014/03/21/subway-vietnam-opens-fifth-store/>

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 Reference
‘The Future of ASEAN: Vietnamese perspective’ 2018, PWC Vietnam, viewed 26 May 2021 <
https://www.pwc.com/vn/en/publications/2018/future-of-asean-vietnam-perspective.pdf>
‘Vì đâu Subway thất bại tại Việt Nam, sau 10 năm chỉ có 1 cửa hàng’ n.d., BrandsVietnam, viewed 26 May 2021 <
https://www.brandsvietnam.com/21089-Vi-dau-Subway-that-bai-tai-Viet-Nam-sau-10-nam-chi-co-1-cua-hang >
Vietnamplus, ‘Bánh Mì Kẹp’, image, Vietnam+, viewed 26 May 2021 <
https://www.vietnamplus.vn/banh-mi-kep-mon-an-binh-dan-cua-viet-nam-khien-the-gioi-phat-cuong/613927.vnp >
‘What is Subway’s Mission Statement?’ 2020, Reference, viewed 25 May 2021 <
https://www.reference.com/business-finance/subway-s-mission-statement-4e38dffbfb5fc7ac>
Wong, V 2014, ‘Subway Chain Will Stop Putting a Chemical Used in Rubber in Its Bread’, Bloomberg, viewed 24
May 2021 <
https://www.bloomberg.com/news/articles/2014-02-06/subway-chain-will-stop-putting-a-chemical-used-in-rubber-in-it
s-bread
>

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 ‘The Future of ASEAN: Vietnamese perspective’ 2018, PWC Vietnam, viewed 26 May 2021 <
https://www.pwc.com/vn/en/publications/2018/future-of-asean-vietnam-perspective.pdf>
‘Vì đâu Subway thất bại tại Việt Nam, sau 10 năm chỉ có 1 cửa hàng’ n.d., BrandsVietnam, viewed 26 May 2021 <
https://www.brandsvietnam.com/21089-Vi-dau-Subway-that-bai-tai-Viet-Nam-sau-10-nam-chi-co-1-cua-hang>
- Vietnamplus, ‘Bánh Mì Kẹp’, image, Vietnam+, viewed 26 May 2021 <
https://www.vietnamplus.vn/banh-mi-kep-mon-an-binh-dan-cua-viet-nam-khien-the-gioi-phat-cuong/613927.vnp >
- ‘What is Subway’s Mission Statement?’ 2020, Reference, viewed 25 May 2021 <
https://www.reference.com/business-finance/subway-s-mission-statement-4e38dffbfb5fc7ac>
- Wong, V 2014, ‘Subway Chain Will Stop Putting a Chemical Used in Rubber in Its Bread’, Bloomberg, viewed 24 May 2021 <
https://www.bloomberg.com/news/articles/2014-02-06/subway-chain-will-stop-putting-a-chemical-used-in-rubber-in-its-bread >

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 Thanks!

Any questions?

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