Swot Analysis Banyan Tree

In Bangkok, Thailand, a group of financial investors invested in a hotel called The Regency Grand Hotel. This hotel is the most cherished hotel in town, where the employees and guests enjoy spending time at this five-star hotel. This place hosts approximate 700 employees that give fantastic benefits, year-end bonuses and ensures job security.

Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. We will attempt to differentiate our product line in several distinct dimensions. By providing products that are vastly superior and unique from our competitors and pricing the products with an affordable price, we can gain something that is beneficial for the company in the future, which is customers’ loyalty and awareness. We may change or modify our strategy for the next round depending how it performs against our competitors.

Cost leadership (Johnson et al., 2013, p194) strategy involves becoming the lowest-cost organisation in a domain of activity. In this case, NiMH battery prices were reduced to remain competitive in the market considering the fact that NiMH batteries represented the Cash Cow of the company.

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

Last year, and for each of the past 25 years, Four Seasons received more AAA Five Diamond awards than any other hotel company and has recently been named Top International Hotel Chain by the Zagat Survey and Four Seasons continues to be one of Fortune magazine's Top 100 Companies to Work for in America.

This was mainly due to the large number of diversified hotels in the chain across the globe

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

Hilton Hotels Corporation – Hilton was founded in 1946 and headquartered in Beverly Hills, California. It has 2,838 hotels worldwide under the brands Conrad, Doubletree, Embassy Suites etc. HTL operates upscale full-service and limited service hotels in urban, airport, resort and suburban locations. It ranks third in the number of employees (105,000) and revenues ($8.6 billion) but second in net income of $552 million.

Providing an exceptional product or experience to the client which gives an added value may be termed as Differentiation Strategy. Differentiation does not just mean the way the final product shows up or the features it gives, but advancement and imagination may be integrated in everything the organization does from the raw materials to post-sales assistance in a manner that the clients may derive value from it. Considering Theme Restaurants as an example, at present the theme restaurant brand which leads the Restaurant industry with its competitive advantage is Hard Rock Cafe on the grounds that they offer a “Dining Experience” which is found nowhere else and is remarkable in every aspect (Heizer & Render, 2013, pp. 72).

The four components of its financial strategy are steady with this growth objective. Its growth objective is to remain a leading growth company and developing appropriate investment

Example - Food prices are increasing dramatically which has become difficult for the hotel to achieve food cost of sales. According to Ionian Hotel Enterprises S.A. standards it is very important for the hotel to deliver high quality of food to guest and meet expectations. It has become inflexible for hotel to control the cost of sales and achieve targeted profit margins. Due to increasing cost and limited budget to spend, it will be a challenge for the hotel to sustain profit margins.

Management then built the brand around public relations and direct marketing programmes to connect with consumers emotionally rather than just spend advertising dollars on getting their name out. BT gained exposure through editorial coverage and photo shoots to showcase the “holistic Banyan Tree experience”. The photographs and collateral materials published in target publications were always evocative, refined and low-key, reaching out to couples attracted to the qualities of romance, privacy and rejuvenation conveyed. The BT logo would be prominently displayed to associate those qualities with the BT brand. Its rate of expansion was also limited to make existing resorts seem more exclusive and private, since consumers had to be turned away given the resorts’ high occupancy rates. Management then applied for and won a series of prestigious awards and accolades given by the travel industry and various

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?

The result of quality effort and focused aim of the founder Mr. Ho Kwon Ping along with time and risk invested in huge amount, Banyan Tree (as of today) is a group of luxury resorts and spas spread in allover Asia and few other famous cities of the world. Based in Singapore, Banyan Tree started its journey with the focus on converting the name into a luxury brand in the mind of its target customers in the year 1994 and till today more than 900 awards and accolades (BanyanTree.com, 2014) speaks about its success story in colorful lines. As of today, Banyan Tree Holdings Ltd.; under its supervision, management and ownership have a total of 25 hotels and resorts, a total of 68 spas, 2 golf courses and more than 66 retail outlets selling its products in 23countries worldwide.

Be the first company to create and penetrate into high-end segment. Provide a unique of hotel & resort and spa that meets high-end customers need. Well-trained for staffs with five – star standard service and measure by efficiency and productivities. Launching new brand to meet a middle class, Angsana, on time and providing to market more product portfolio like Gallery and The Museum Shop. Smart in distribution products and services thru GDS. Success in building CSR and environmental conservation, Success in using local culture and heritage that will be served and satisfied their customer, these culture and heritage will be differentiated in each county. Bring benefits to local famer and traders by purchasing fresh product and traditional art, handicrafts. Information Technological System is available with latest updating about BTHR program. it is very convenient for customers.