Banyan Tree Case Essay

banyan tree Tree is founded in 1992 by Ho Kwon Ping.The first banyan Tree opened in 1994 in Phuket Island.The resorts were designed to amalgamate into the natural environment. Corporate StrategiesK. P. Ho thinks that company should consider the physical and human environment when making business decisionsBusiness StrategiesGoals 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 place is narrow and affluent. Competitive Advantage Banyan Tree goes into locations that are non heavily developed and create sustainable resorts. Logic Banyan Tree intends to expand locate in diverse locations Differentiation Focus through a differentiationEnvironmental AnalysisSociocultural FactorsTerrorist attacks September 11,2001 and the Bali bombingsThe SARS outbreak of 2003Economic and Natural FactorsThe Asian Financial Crisi of 1997T he Indian Ocean Tsunami of 2004Porters Five Forces ModelCustomer Buying PowerTends to be moderateCustomers are few in numberHigh buying power some readily avaibleSupplier Bargaining PowerTends to be highDue to the unique locations and high quality productsOnly a limited number of suppliers usable to provide these products and services Entry BarriersTend to be highLarge capital requirements and government regulationsSubstitutesDue to Banyan Trees niche market and concept it is important for them to be aware of readily available substitutes Rivalry Among Existing FirmsBanyan Tree challengerAman ResortsComo HotelsSix Senses HotelsOne and only ResortsAngsana CompetitionFour SeasonsShangri-La HotelsStrategic DirectionMission StatementWe want to build a globally recognized brand which by inspiring prodigious 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 StatementTo 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. organisational Resource AnalysisStrengthsWell known and reputable brand nameStrong brand identityBrand visibilityCustomer LoyaltyWeaknessesneediness of knowledge of target market in globalSmall talent poot to choose from because properties are in remote locations Organization Resource Analysis corporalUnspoiled,unique locationsOutstanding facilitiesSustainability Sensitive designHumanCEO is a major source of competitive advantageWell trained and motivated employeesCorporate Partners much(prenominal) as American Express,Citibank etc.FinancialProfits have risen significantly since the 2004 TsunamiHigh price to cost ratioStrong links to financiers world(a) Organizational ResourcesBrand and organizational reputation Aspirational brand positionKnowledge and LearningEntrepreneurship strategyDiverse culture