Most would have thought that the market for the luxury hotels and resorts industries around the world would have plummeted riding on the recession in 2009. However, a study carried out by the “Market Metrix Hospitality Index (MMHI)” (Barsky, 2009) proved that more than half of the respondents worldwide indicated that the recession will not detour their plans for travelling. In fact, companies and business travellers, whom are not the core target market of BTH, are the ones cutting down, or eliminating business travels altogether to cut cost.
Apart from which, the market condition is highly determined by the competitors and the intensity of the competition. The key competitors for BTH are the Aman Resorts and Hilton Hotel Group (Conrad).
The intensity of rivalry amongst these competitors are relatively high, with almost all groups targeting the same potential market (i. e. currently China and Vietnam) as well as fighting to gain a head-start and strong market position above the competitors. New competitors are finding it difficult to break through into the market to compete due to the high cost involved in starting up and investing in these luxurious resorts.
The Research paper on Coral Divers Resort Case Study
... must adjust his business to re-appeal to the market, or sell the resort and start up in a new location. Symptoms ... years of losses experienced by Coral Divers, all while their competitors continue to prosper, is a result of the scuba industry ... worthwhile to continue to proposition his business as a diver’s resort. Resorts on the other hand, while there are many and new ...
Hence, the barrier of entry is high for potential new entrants. The market condition will also be affected by the suppliers and buyers of this industry. The supplier in focus will be the travel agencies as these are the people or associations that provide customers with the services to these luxury resorts. The bargaining power of these agencies is high as they have the extensive channels to reach out to the mass public, while many different hotels and resorts will be vying to run their advertisements and promotions through them.
The buyer on the other hand, faces low switching cost should they decide to go with another resort for their travels. This is due to the fact that most luxury resorts provide identical offerings at relatively similar prices. Although customers’ loyalty can be garnered with the experiences provided by the resorts, the minimal differential uniqueness that one party has over the other places each under pressure against the mass buyers In conclusion, the market condition of luxury resort industry is stable and trending due to the large untapped potential markets especially in the Asia Pacific region.
SWOT Analysis Strengths • Brand recognition: Banyan Tree Holdings (BTH) is a leading international operator in premium resorts, hotels and spas industry. It is well-established with strong brands recognition as world’s top leisure destinations. 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.
The Business plan on Starbucks Coffee Market Customer
Starbucks Corporation History Of Starbucks Gordon Bowker, Jerry Baldwin and Ziv Siege founded Starbucks in 1971. Their goal was to sell the finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982, Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars. Harold Schultz was employed as the director of retail operations and ...
Again they need a group of consultant or specialist to guide and reduce the administrative structure cost. • High dependency on Thailand business: Revenue come from Thailand is 60% out of the whole. Thailand comparing to Philippines is a much safer country to travel. Philippines are often seen to be very “quiet” to “expose” their country to others unlike Japan, Singapore etc. They are lack of expertise in “tourism boosting and management. Philippines Government should actively promote on their country places of interest in order to boost their economy.
They should emphasize on their places of interest, the safety, they should reduce the crime rate so that tourist would feel safe to travel. They should train their people to speak “International language”. They should invite expertise to train their front line people to be more competent. • Cultural diversity could lead to inconsistent quality standard: Opening too many outlets in all different countries mostly in Asia could lead to the problem of keeping the standardized strategy across other country due to differences in culture and value practices.
It is important for BTH to consider mobilising their staffs to different country of location to train and guide them in order to be familiarized with the cultures and values of each country. Opportunities • Staycation: There are an increasing number of locals who choose to spend time in a local hotel than travelling overseas. These potential customers may be likely celebrating special occasions or just want to spend some quality time with their family or friends.
As such customers may choose to stay in a premium hotel for ‘Staycations’, which is in line with Banyan Tree’s image of a premium and luxurious resort/hotel chain. Apart from attracting the high number of travelers coming to Singapore, Banyan Tree can set up their first resort/hotel in Singapore to attract the ‘Staycation’ customers locally. • Loyalty program: With 29 resorts and hotels in the Asia Pacific region, it gives Banyan Tree an opportunity to introduce loyalty program in encouraging more customers to revisit during their holidays.
The Research paper on Rosewood Hotels And Resorts Case Study
Rosewood Hotels and Resorts is a business that has 12 establishments worldwide. Until 2004, the company has run an individual branding strategy; but recent events, such as the adoption of a new President and CEO, have the company considering a corporate branding strategy. Rosewood seems to have hit a roadblock with their current strategy; they are concerned that their guests do not fully ...
It can be done possibly through an alliance with their sister company, Angsana Hotels & Resorts. • Corporate customers: Apart from individual consumers, there is also an increasing number of corporate customers who choose to hold events like retreat, dinner & dance in a hotel/resort setting. In Singapore’s relatively positive PEST factors, we can witness more companies are setting up head offices in our local market. Threats • Global recession: Economic growth continues to slow at an accelerated pace globally ever since the collapse of the Europe’s economy.
