Subway Sandwich Shop Situation AnalysisSubway Sandwich, as presented in the case study presented in the MGT 551 Marketing Management class, is an undisputed market leader in a segment that is “firmly established as a leading national food for which there is sufficient room in all areas” (University of Phoenix, 2008). However, with increasing competition, changing consumer trends and increased product specialization, Subway's real strategic marketing challenge is being able to develop and maintain differential advantage while maintaining sales growth and profitability. Subway Sandwich competes effectively with other fast food restaurants by including and promoting healthier meals on its menu, as demonstrated by its subs containing 6 grams of fat or less, and its advertising campaign featuring Jared " the Subway guy” who lost 245 pounds in one year on a strict Subway diet (Subway, 2008). However, as a market summary complemented by a SWOT analysis demonstrates below, it is determined that Subway must attract a customer base beyond its traditionally health-conscious consumers in order to overcome their marketing challenges and increase volumes. and the profitability of its individual stores. The sandwich market – a growing industry Consumer interest in hamburgers and fries has continued to decline in favor of sandwiches, giving Subway a competitive advantage over competitors like MacDonald's or Burger King, for example . While most fast food restaurants are responding to this phenomenon by changing their menus to include healthier choices, Subway is enjoying 15% annual growth in sandwich sales, compared to a meager 3% growth for burgers and steaks (McCarty, 2007). The United States...... middle of paper ......the. Retrieved June 16, 2008, from http://ezinearticles.com/?Fast-Food-Market-Forecast---The-Subway-Example-of-Strategic-Product-Positioning&id=735770Men's Fitness, (March 2008). Don't oversize yourself. Men's Fitness, 24(2), p.32. Retrieved June 17, 2008 from EBSCOhost database. Subway, (June 2008). Frequently asked questions. In About Us. Retrieved June 17, 2008 from http://www.subway.co.uk/Subway (June 2008). Jared's incredible story. In Menu/Nutrition, All about Jared. Retrieved June 15, 2008 from www.subway.comUniversity of Phoenix (June 2008). Case 1: Subway sandwich shops. In MKT 551 – Marketing Management Resources Web Page. Retrieved June 17, 2008, from https://mycampus.phoenix.edu/secure/resource/resource.aspWilson Quarterly, (Winter 2008). Light food, big eaters. Wilson Quarterly, 32(1), p.11. Retrieved June 17, 2008 from the EBSCOhost database.