7. Discussed the existed business, corporate and functional strategy.
• Banyan Tree Holdings Limited is a leading manager and developer of premi um resorts, hotels and spas in the Asia Pacific. After a successful IPO in Jun e 2006, Banyan Tree Holdings Limited planned to use parts of the IPO proc eeds to finance an ambitious expansion plan. At the core of this business d evelopment plan was an ambitious proposal to open 21 new resorts over f our years which would span non-Asian territories from Greece to Mexico. • Banyan Tree has several business segments: hotel investment, hotel mana gement, spa operations, gallery operations, property sales, design fees and others. The Group has two award-winning brands: Banyan Tree and Angsa na, and their primary business is the management, development and own ership of resorts and hotels.
• The brand image of Banyan Tree’s is neither luxury nor exclusive, but a spirational. The strong brand recognition allows it to be a price-maker rather than price-taker at the high end market of resorts, and it is also the platform for the Group’s global expansion. So this case considers h ow a company with an experiential brand should manage its growth w hile at the same time prevents losing the core values of its brand.
8. Proposed the existed business, corporate and functional strategy.
• Four components of a business strategy:
• Goals: one of the top two or three dominant players in a global space which is ve ry niche but nevertheless very global.
The Essay on Banyan Tree Brand Expansion
... requires time to complete it. Since at present Banyan Tree hotel or resort generally have interest on ownership dependent on a ... including romance), and services (including warm hospitality) offered, Banyan Tree created strong brand identity and a unique value proposition that was ... the political and economic reasons may also affect the business. What is more, the culture there is slightly different ...
• Scope: Banyan Tree provides a luxury retreat for guests. The Banyan Tree target market is narrow and affluent.
• Competitive advantage: before the 7 year mark, location is a competitive advant age. Banyan Tree goes into locations that are not heavily developed and create s ustainable resorts.
• Logic: Banyan Tree intends to expand and locate in diverse locations. • Corporate strategies:
9. Financial analysis in the case.
• Banyan Tree Holding Limited announced second-quarter results for th e period ended June 30,2006. Revenue had more than doubled to $ 7 1.4 million, largely due to post-tsunami recovery.
• Profits have risen significantly since the 2004 tsunami
• Portion of IPO proceeds set aside for ambitious expansion plan
• High price to cost ratio 5to 7years
• Strong links to financiers.
