2021 BTEC Business Level 3 -
Unit 5: International Business
Assignment 3 ( Distinction*)
Subway is a fast-growing international American fast food restaurant franchise, in the restaurant industry,
founded on 28 August 1965 in Bridgeport, Connecticut, United States, by Fred DeLuca, Peter Buck. They are
headquartered in Milford, Connecticut, United States. It is owned by Doctor’s Associates, Inc. They primarily
sell submarine sandwiches, beverages, and salads. Currently, Subway is in 41,600 locations in 111 countries
worldwide. Subway is a Private Limited company (LTD), with Departments of Human Resources (HR),
Research and Development (R&D).
In this segment I will be explaining how products and processes must be adapted for Subway, an international
business.
Product adaptation is the process of the firm adapting their products to meet the standards and needs of the
local markets or customers. This is important for International companies that export their products as it
ensures they meet the regulatory requirements of the local markets. The top four requirements for
adaptations are: Culture, Market development, Competition, and Laws. To successfully adapt their product to
different markets: Customer Research, Export Research, Competition, and Priorities.
Glocalization is a combination of the word's ‘globalization’ and ‘localization.’ This is used to describe a product
or service that is developed and distributed globally but is also adjusted to accommodate the user or
consumer in a local market.
,When Subway enters a new market, the first issues they should face is having to build brand awareness and
learning about potential customers' eating preferences and customs as well as if the country has any food
laws that must be abided by, Subway attempts to adapt quickly to a new restaurant's immediate service area.
In Israel, for example, the company omits pork items from its menu to avoid violating religious dietary
customs. In countries where people are not used to eating sandwiches, Subway has had to educate
consumers about this uniquely American product. For example, the picture below shows a Subway sandwich
in India, as shown in the picture it is mostly vegetables, which is because around 20% of the population in
India are vegetarians and the majority of India are Hindus or Muslims, so they do not eat meat or pork, due to
their religious belief. Which would mean in India their menu would mostly consist of vegetarian options.
Subway has adapted and changed their products depending on the country they operate or the consumer in
the local market, by adopting the countries cultural preferences and taste towards their products, so that
they can innovate products that pleases the individual's preferences while respecting the countries culture or
traditions on food. Glocalization has made them one of the fast-growing franchises worldwide, as they rank
fourth most valuable fast-food brand globally. In Australia, they have one of the toughest food safety law
worldwide, meaning Subway would have had to find a way to adapt to their strict food laws. Australia's rules
are against endangering the current habitat and wildlife as well as certain foreign foods, and plant materials.
So, for Subway to abide by their rules they would have to change their products to match Australia's
preferences, such as having to create a healthier menu and adding a vegan sub and gluten-free wraps, as well
as using their traditional food.
This is seen in the picture below where they combine the traditional flavor of schnitzel, a thin, breaded pork
cutlet, with coleslaw, creating a contrast of flavors that work very well together.
