banyan tree case study essay 2


Precisely what is Banyan Shrub doing to target travellers searching for a “Banyan Tree” experience but are even more price-sensitive? Do you think this will operate? Please sophisticated. Banyan Tree Hotels and Resorts (BTHR) identifies by itself as the pioneer organization to adopt the concept of designing person villas because love nests for couples on getaways. “Banyan Forest experience” emphasises on full privacy and offers an oriental getaway thus customers can easily indulge and rejuvenate themselves within the rentals, away from the busy cites. Unlike most top-class hotel organizations and areas, BTHR saves on lavished common areas including the lobby, and focuses on the inside décor and facilities with the villas by having themed rooms or putting in private swimming pools for the Pool Villas.

Furthermore, BHTR reverts to traditionally-styled gyms which are non-air-conditioned and masseuses are unshod, allowing them to established a wider price range coming from as low as US$33 to target price sensitive holidaymakers. These tactics create a competitive advantage to capture the price hypersensitive customer basics who are seeking for the “Banyan Woods experience”.

We could make use of Michael Porter’s Five Pushes analysis to assess if BTHR’s strategies are working as well as their competitiveness in the market. Threat of recent entrants or perhaps potential competitors- Low pressure:

There are substantial barriers to entry including heavy investment costs in getting suitable terrain size recently. Governments have also set tighter regulations in ownership of land along with greater environmental responsibility pertaining to firms in the market. Threats of substitute products- High pressure: Various options are available for tourists to receive accommodations. Vacationers may succumb to budget lodge chains if their aim is always to tour as much of the country within the smallest finances. Backpackers may possibly look to house stays in the event they aim to seek out more authentic, and localized living experience. Competition among existing firms- Medium to ruthless: Within the luxury resort marketplace, BTHR effectively positioned by itself to capture the interest of price conscious consumers that even now seek for high grade services through excessive branding and promoting. Few businesses are willing to choose exotic sites which are private and hard to get at, reducing competition of identical services. Yet , high end opponents such as Aman Resorts have got a strong consumer bottom which BTHR may be missing out from. Negotiating power of customers- Low to medium pressure: Though a single tenth in the target market section is made up of company clients that may drive prices downwards, a primary bulk of BTHR’s guests will be couples looking for romance and intimacy who also are individual buyers with low bargaining power. Bargaining power of suppliers- Low pressure: Instead of contracting external businesses, the firm has its own operate team to deal with resort’s expansion. This minimizes pressure from suppliers as well as inefficiency costs in decision making. From the above evaluation, I would suggest that BTHR’s strategies would work inside the short run particularly in Asia-Pacific location due to its strong brand collateral. With fewer direct competitors, customers possess lesser options if they are looking for oriental and value for money experience.

However , seeing that majority of BTHR’s guests are couples, consumer loyalty might be weak given that they may search for different encounter each trip. Furthermore, it could lose out to other opponents as they have captured a sizable market coming from families and company clients which have higher chance to return. Low customer return rate may limit its expansion in the long term as the market share erodes. The substantial barriers to entry can also imply potential challenges in the event BTHR is usually considering broadening into fresh areas, this can impeding it is growth internationally. For BTHR to develop the long run with international level, BTHR also has to consider the opportunities and hazards which I will analyse with the PEST model below. PoliticalThreat| Emphasis on environmental friendliness may compromise about quality of services such while saving in air conditioned facilities asked complaints. | EconomicsOpportunity/ Threat| In current times of low economic overall performance, customers would prefer affordable areas to high-end luxurious areas. It may be a double edged blade; opportunities could possibly be created for BTHR to attract these types of price sensitive customers and yet at the same time, these types of customers could possibly be attracted apart by all those even lower-end resorts or perhaps hotel restaurants. | Social Opportunity| Raising demand for retreat trips to distress, away from the bustling town life. Customers may charm to BTHR’s seclusion principle for brief escapes. | TechnologyOpportunity| Customers may recommend the hotel through different forms of social websites if they had very good experiences, speeding up word of mouth marketing influence which is deemed most effective. | According to the INFESTATIONS analysis, there seems to be more for you to allow development for BTHR in the industry. Yet , if BTHR were to expand in the west, the firm may have to restyle its resorts in line with the western countries’ cultures, dropping the initial asian touch which it has top quality itself after. This may result in brand dilution which could destruction its marketplace position. In my opinion, if BTHR were to continue on using its oriental strategy, it might be well-liked by the european consumers since it is a breath of air of originality and clean air amidst the persistent bad economic conditions and stress filled work tempo respectively. This may be specifically attractive to selling price sensitive travellers since these kinds of resorts will be located closer to them, enabling cost savings in flight expenses. Thus We would conclude through the two examines that BTHR’s strategies are currently working well and the company will always remain competitive if that they constantly take part in product improvements to cater to consumers’ desire to have refreshing idea resorts when still featuring high quality of privacy and services at reasonable prices.


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