This is a case study.
First, read the Quiznos Competitive Advantage Case,
And then, fully answer the five questions.
The case is in the docx document that I submitted for you.
The Quiznos Competitive Advantage Case
What are Quizno’s and Potbelly’s relative competitive advantages: Differentiation, low cost or focus?
At which of the value chain activities did Quizno’s fail?
What went wrong with Quizno’s competitive advantage?
Use data to explain which stage of the industry life cycle the sandwich industry is in.
What are your suggestions for turning around Quizno’s?The Quiznos Competitive Advantage Case 1. What are Quizno’s and Potbelly’s relative competitive advantages: Differentiation, low cost or focus? 2. At which of the value chain activities did Quizno’s fail? 3. What went wrong with Quizno’s competitive advantage? 4. Use data to explain which stage of the industry life cycle the sandwich industry is in. 5. What are your suggestions for turning around Quizno’s? Quiznos and Potbelly: A tale of two sandwich chains Claire Zillman, March 18, 2014 The two restaurant chains offer nearly identical products: toasted subs made fresh. So how have they ended up on opposite ends of the fast-food food chain? FORTUNE — It’s lunch time and you want a hot, melty — but still fresh — submarine sandwich. It’ll be crunchy, it’ll be gooey, it’ll be all-around delicious. There are two restaurants whose sole purpose is to provide you with an oven toasted sandwich — Quiznos and Potbelly. At these restaurants, you have to tell them to notstick your bread in the oven. For this lunch, you’re craving the kick of an Italian club, and both places offer a concoction of capicola, pepperoni, and salami — the Quiznos sandwich starts at $5.99; Potbelly’s at $5.90 (at least, that’s how much they cost in Manhattan). Which do you choose? Stop thinking about it. There’s really no contest. You’re going to Potbelly because it has those yummy hot peppers, sometimes there’s live music playing, and when you order a milkshake, they put a tiny cookie on your straw. Perhaps it’s that consumer logic that has put the two chains on such divergent courses. On Friday, Quiznos filed for bankruptcy, listing debt of more than $500 million, according to Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Del. Its total network sales declined from an estimated $1.6 billion in 2008 to $716 million in 2013 — an annualized decline of 15.5%, according to an October 2013 report from IBISWorld. In a statement, the company says it expects to continue operating in the ordinary course of business throughout its restructuring. “The Company will continue working with its franchisees in the U.S. and internationally to strengthen the brand, build momentum, and improve growth and profitability,” it said. A Quiznos spokesman said on Monday that the company had no comment beyond its public statements and court filings. Potbelly PBPB 3.44% , meanwhile, went public in October and immediately more than doubled its initial trading price of $14, giving the Chicago-based chain a value of $802.5 million. Potbelly’s total revenue rose 9% to $299.7 million in its latest quarterly earnings, and comparative sales rose 1.5%. In 2013, it opened 42 new locations. The two restaurant chains offer nearly identical products: toasted subs made fresh. So how have they ended up on opposite ends of the fast-food food chain? Sure, Quiznos is facing plenty of competition, not just from Potbelly but from the likes of Panera PNRA -0.18% , Jersey Mike’s Subs, Firehouse Subs, and Jimmy John’s. But there’s demand to match. The sub and sandwich industry in general is thriving, according to IBISWorld. The sector grew 6.8% in 2009 despite shrinking consumer confidence,