Banyan Tree Case Study

Executive Summary banyan Tree offers a unique get it on with its hotel and spa experiences in the South East Asian region. Labeling itself as an aspirational fall guy, the community was established by the Ho family in 1992 and has boasted a gross profit of $52.1 million in 2006. Its superior branding, minute corporate social responsibility practices and its careful investment and involution strategies attribute to its success. As the company goes public it faces the new possibilities, offered through increased capital, and new challenges such as demands imposed by shareholders. How will the company continue to expand its profitability bandage preventing brand dilution through all overexpansion? Key issues Branding Banyan Tree is an scoopful brand, catering to affluent travellers. In recite to expand its client base, Banyan Tree launched a brand, Angsana, which meets the needs of a broader guest base. Angsana does not currently operate in the same regions as Banyan Tree hotels, this separation has occurred to prevent cannibalization and dilution of the brand. While being effective, this reduces the number of locations in a given area. Spreading the companys resources and cognition over many regions may not be cost effective.

Banyan Tree should continue to be cautious in expansion but not over cautious as to limit the brands` profitability. The brand has also been across-the-board to offer spa dish ups, retail outlets and other shops. The company continues to trade its brand portfolio while preserving its distinctive identity and strong brand image. The strong brand image has allowed Banyan Tree to apply 3 brands of spas throughout the world. Opening spas is one way Banyan tree can build an image, gain regional knowledge and assess profitability prior to opening a stamping ground in that area or location. Banyan Tree relies on customer experience as its strongest promotional tool. Delivering a unvarying product may be challenging in the service industry because of the... If you want to get a full essay, order it on our website: Orderessay

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