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Table of Content
Subway Global Distribution & Operation 5
Overview of Nissan’s Global Trade 9
The 21st century is experiencing an intensified pace of changes in the macro-field due to the rapid advancements of technology, the decrease in barriers for communication and transportation (Kedi & Mukherji, 1999), and rapid global growth and adaptability to these changes of various companies; which through different global operation strategies have managed to create global awareness and strive in highly competitive markets. Additionally, literature has shown that due to such rapid pace of internationalisation, even firms with no motive of globalizing “suddenly embrace rapid and dedicated internationalisation” (Bell, McNaughton,& Young, 2001).
On this note, this report intends to have a particular overview of Subway and Nissan’s current global operation and distribution strategies, as through a critical and analytical analysis of these two global conglomerates, who pursue rather different strategies for global reach, one can envision a more holistic view of how companies are able to adopt different strategical and operational pathways, and still manage to overcome such volatile times and stay ahead of competition. Additionally, this paper will intend to identify, compare and analyse Nissan and Subway’s global strategies so as to comprehend the drivers for current global success as well as to be able to predict future evolution and impact of such strategies on the companies.
Firstly, one should note that both Subway and Nissan were established as small, national businesses; however through a clear comprehension of their competitive advantage, and a viable strategy to exploit their competitive advantage, they were able, through diverse processes, to expand and become world-leading companies.
Nissan is an older corporation, based in Japan, dating back from early 1900’s; it has undergone various name changes, however its current name has but first used and founded in the 1930’s ( Nissan-website ). Unlike Subway, which is a more modern organisation, Nissan has endured the economic turmoil of World War II and has witnessed a long line of technological changes, with a good ability to be flexible and adapt throughout history to these changes; nonetheless experiencing some decline in growth along the years.
Moreover, Nissan first grew nationally, within Japan, and once it established its competitive advantage and economies of scale, it pursued importing and exporting of automobile manufacturing part, and later adopted strategic alliances with other organizations in the industry, such as Renault, to maintain its stance in the highly competitive automobile industry; and last but not least it has adopted foreign direct investment, which allows it to currently have assembly plants in more than 20 countries, and “offer products and services in more than 160 countries”(Nissan-website).
On the other hand, Subway is an American corporation, which pursued a simple but effective idea; to provide customers with quick and healthy sandwiches. Subway became famous for its supply of healthy sandwiches where customers can pick and choose different fillings. The restaurant firstly opened in 1965 under the name of “Pete’s Super Submarines, while later changing its name to the current one, Subway.( Industry Leaders Magazine RSS, 2012)Currently, “there are more Subway restaurants in the world than any other restaurant chain” (Subway-website), proving Subway is a truly young global leader in its industry, which also has “surpassed veteran Burger King and Wendy’s in market share” (Pitta, 2010) and closely catching up with giant McDonalds.
Subway Global Distribution & Operation