Banyan Tree Case Study
Banyan Tree offers a unique experience with its hotel and spa experiences in the South East Asian region. Labeling itself as an aspirational brand, the company was established by the Ho family in 1992 and has boasted a gross profit of $52.1 million in 2006. Its superior branding, excellent corporate social responsibility practices and its careful investment and expansion strategies attribute to its success. As the company goes public it faces the new possibilities, offered through increased capital, and new challenges such as demands imposed by shareholders. How will the company continue to expand its profitability while preventing brand dilution through overexpansion?
Banyan Tree is an exclusive …show more content…
The Angsana resorts are facing competition from mainstream luxury hotel chains, such as four seasons and Shangri-La Hotels and resorts. These competitors are huge, boasting over 50 hotel locations, their size allows them to maintain a stronger brand image.
Strategy and Conclusion
Banyan Tree has consistently offered customers a unique experience at both its resorts and spas. The unique design highlights the characteristics of the natural beauty surrounding its select locations. It continues to meet the needs of this high end, niche market with its superior service. Previously run exclusively by the Ho family, after the initial public offering, must ensure that its brand image and exceptional service delivery are not diluted by shareholder demands for higher profit margins.
Branding and corporate responsibility will continue to be an important factor in the company’s operations and marketing strategy. Banyan Tree should continue to use the Angsana brand to broaden its customer base but focus on retaining Banyan Tree as its core brand because of its limited competition and premium profit margins.
This successful brand continues to expand its operations, currently the company operates heavily in the South East Asian region,
Growth strategy 1. Resource allocation tradeoff. The challenge is to balance two distinct brands Banyan Tree and Anagsana. And differentiate them without diluting either, the leading