Banyan Tree Case Essay

Banyan Tree is founded in 1992 by Ho Kwon Ping.The first Banyan Tree opened in 1994 in Phuket Island.The resorts were designed to blend into the natural environment. Corporate Strategies  K. P. Ho thinks that company should consider the physical and human environment when making business decisions Business Strategies Goals : â€Å"†¦one of the top two or three dominant players in a global space which is very niche but nevertheless very global† K. P. Ho said. Scope : Banyan Tree provides a luxury retreat for guests.The Banyan Tree target market is narrow and affluent. Competitive Advantage : Banyan Tree goes into locations that are not heavily developed and create sustainable resorts. Logic : Banyan Tree intends to expand locate in diverse locations Differentiation : Focus through a differentiation Environmental Analysis Sociocultural Factors Terrorist attacks September 11,2001 and the Bali bombings The SARS outbreak of 2003 Economic and Natural Factors The Asian Financial Crisi of 1997 The Indian Ocean Tsunami of 2004 Porter’s Five Forces Model Customer Buying Power Tends to be moderate Customers are few in number High buying power Few readily avaible Supplier Bargaining Power Tends to be high Due to the unique locations and high quality products Only a limited number of suppliers available to provide these products and services Entry Barriers Tend to be high Large capital requirements and government regulations Substitutes Due to Banyan Tree’s niche market and concept it is important for them to be aware of readily available substitutes Rivalry Among Existing Firms Banyan Tree Competition Aman Resorts Como Hotels Six Senses Hotels One and only Resorts Angsana Competition Four Seasons Shangri-La Hotels Strategic Direction Mission Statement We want to build a globally recognized brand which by inspiring exceptional experiences among our guests,instilling pride and integrity in our associates and enhancing the physical and human environment in which we operate, will deliver attractive returns to our shareholder. Vision Statement To build on its brands, Banyan Tree and Angsana to create a diversified group of niche resorts and hotels in strategic locations throughout the world, which would be complemented by residence and property sales,spa and gallery operations. Organizational Resource Analysis Strengths Well known and reputable brand name Strong brand identity Brand visibility Customer Loyalty Weaknesses Lack of knowledge of target market in global Small talent poot to choose from because properties are in remote locations Organization Resource Analysis Physical Unspoiled,unique locations Outstanding facilities Sustainability Sensitive design Human CEO is a major source of competitive advantage Well trained and motivated employees Corporate Partners such as American Express,Citibank etc. Financial Profits have risen significantly since the 2004 Tsunami High price to cost ratio Strong links to financiers General Organizational Resources Brand and organizational reputation Aspirational brand position Knowledge and Learning Entrepreneurship strategy Diverse culture