Banyan Tree Hotels and Resorts was established in Singapore as a family business. Having reviewed the case of Banyan Tree, one can conclude that the managers of this business have done everything to adjust to a rapidly changing environment. Focusing on an “innovative niche product” and creating a “sanctuary of romance and intimacy” contributed to the company’s success in the past (Wirtz, 2012, p. 520). Moreover, employees were allowed to act following local culture and practices, as long as their actions preserved the company’s promise of romance and intimacy (Wirtz, 2012, p. 521). However, the company still needs to develop a strong strategic plan to preserve its culture, ethics, and standards and remain relevant and competitive.
The main strengths of the company are related to their place, price (low cost of operating environment and high price for their services and commodities), people (experienced team of managers), and product (strong brand image). Moreover, the company has an integrated business model and integrated capabilities. At the same time, its main weaknesses are high dependence on Thailand business and many small businesses, like Spa Operations, Hotel Residences, Gallery Sales, and others (Wirtz, 2012). In addition, the overall business strategy of Banyan Tree (BT) is not clearly articulated. One can suggest that BT needs to diversify risks across various geographic regions and expand its revenue base. Moreover, to develop its market, BT needs to expand its facilities, improve efficiency, promote sustainability, and continue to support environmental projects.
I think that the company may achieve its goal to become global and remain successful if it continues to grow internationally and promote sustainability in the future. For instance, BT could expand into low-cost locations, attracting new customers. In addition, the company should formulate a clear vision of its business for all its workers. Consequently, all people will work in the same direction, attaining better results in all spheres. In conclusion, BT should examine the growth potential of its small strategic segments, like Spa Galleries, to understand how to improve their cost structure and ensure that each of these segments is profitable.
Reference
Wirtz, J. (2012). Banyan Tree: Branding the intangible. Emerald Emerging Markets Case Studies, 1(1), 519-527. Web.