Swot Analysis Banyan Tree

1625 Words Oct 30th, 2012 7 Pages
SWOT ANALYSIS ON BAYAN TREE HOLDINGS LIMITED
Corporate Information
Banyan Tree Holdings Limited (BTH) is a leading international manager and developer of premium resorts, hotels and spas in the Asia Pacific region, with close to 30 resorts and hotels, over 60 spas and 80 galleries; as well as three golf courses. Of which they still manages and own interests in niche resorts and hotels. Each resort typically has 50 to 100 rooms and commands room rates at high end of each property market.
Its primary business is management, development and ownership of resorts and hotels and it is highly involved in the two award-winning brands; Banyan Tree and Angsana. It also operates Laguna Phuket which is a leading integrated resort in Thailand through
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BTH has won over 600 awards and accolades for the resorts, hotels and spas under its management. • Overall cost leadership: BTH is highly competitive in achieving the lowest production and distribution cost in order to be sustainable in the marketplace. The company’s performance is improving with 3% growth in 2011 (S$329.5 millions) versus previous year (S$321.3 millions). • Product differentiation: BTH has successfully differentiated itself from the competitors by offering unique experiences for their guests in their innovative ideas & creative designs in their hospitality industry. Travellers will be able to experience prestige and excellent services in their business operations. • Focus: A positive catalyst to enhance business growth by shifting its assets portfolio into the emerging market. The business focuses on the strategic presence in Asia which is a growing market that will lead to the expansion of new market segments to penetrate into countries like China, Vietnam, India and etc.

Weaknesses • Poor Operating Margin in Hotel Management and Spa Operation: In order for the business to sustain, they must reinforce in the operating margin management by finding out the correct and systematic method to manage the operating cost etc.

• Heavy Administrative Cost Structure: Research shown 14% of the revenue in 2008. Again they need a group of consultant or specialist
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