SUBWAY Restaurants in Middle east Research Paper

SUBWAY Restaurants in Middle east - Research Paper Example This ensures that an organization captures a significant consumer population thus enhancing and increasing sales and increases profit levels. Additionally, retaining a large profit margin is important in the global market. An organization should ensure that it generates enough funds to support an organization’s operations (Fujimoto & Shiozawa 37). In the global market, an organization requires enough funds to fund factors like advertising and marketing. For instance, marketing in the international market is an expensive venture which needs a steady flow of income at great margins (Fujimoto & Shiozawa 32). If the income level is poorly managed funding marketing projects would fail which would reduce an organization’s exposure to the consumer market. This would automatically reduce the income levels and may lead to the exit from the global market. Fujimoto & Shiozawa point out that stability; relevance and effective management are the three factors an organization in the global market needs to have in order to gain from the vast global market (66). For instance, Subway restaurant has a lot of competitors in the Middle East. For this reason, the organization should ensure the local consumers appreciate and recognize their international entity. However, it is an obvious assumption that international restaurant ventures in the Middle East have a great consumer attention level which creates a fair level of competition in the international organizations in the venture. Fujimoto & Shiozawa however, argue that an organization can easily manage their consumer appraisal level by generating a target over a certain period of time (55). This would make it simpler to manage and generate strategies to enhance stability of the organization in the global market. The industry analysis Intensity of rivalry With the numerous technological advancements in the Middle East, the location has attracted numerous investors and international market. This has increased the lev el of competition in the market and increased caution by organizations venturing in the market. In terms of restaurants and hoteliers the level of competition is much greater (Fujimoto & Shiozawa 43). The Middle East has become a top hub for tourists. This attracts the investments of many stakeholders in the hotel industry. Regardless of the many organizations, the industry generates large profit returns (Fujimoto & Shiozawa 44). This eases the intensity of the rivalry since the quantity of consumers is enough to support most of the hotel ventures. In the case of subway restaurants, the organization is limited in terms of offers given to the consumers. Additionally, this limits their exposure. Many organizations in the Middle East offer the same services with an aim of acquiring the same profit returns as the Subway restaurant. Substitute The Middle East provides a great number of substitutes in the hotel industry which makes it an important factor to consider effective competitive strategies. Top restaurant ventures across the globe such as McDonalds, Dorman’s, Costa Coffee and the local organizations create a large variety of substitutes in the market. Additionally, the consumers in this particular market hold each of the organizations with same sensitivity and significance. This likely puts every organization in t