CASE STUDY:
BANYAN TREE: SUSTAINABILITY OF A BRAND
DURING RAPID GLOBAL EXPANSION
Executive Summary
Banyan Tree Holdings Limited is a leading manager and developer of premium resorts, hotels and spas in the Asia Pacific. After a successful IPO in June 2006, Banyan Tree Holdings Limited planned to use parts of the IPO proceeds to finance an ambitious expansion plan. At the core of this business development plan was an ambitious proposal to open 28 new resorts over four years which would span non-Asian territories from Greece to Mexico.
Banyan Tree has several business segments: hotel investment, hotel management, spa operations, gallery operations, property sales, design fees and others. The Group has two award-winning brands: Banyan Tree and Angsana, and their primary business is the management, development and ownership of resorts and hotels.
The brand image of Banyan Tree’s is neither luxury nor exclusive, but aspirational. 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 how a company with an experiential brand should manage its growth while at the same time prevents losing the core values of its brand.
The Problem
1. Keeping the brand image that is neither luxury nor exclusive, but aspirational.
2. To innovate the product without diluting the brand.
3. How to achieve the global expansion while maintain the structure of the company, brand recognition, as well as the service standards of uniformity.
4. HR problem in its global expansion.
5. All kinds of risks in its global expansion, including various uncontrollable circumstances, natural and man-made crises.
6. Environmental conservation problem.
7. When Banyan Tree span its non-Asian territories from Greece to Mexico, whether its past experience in Asia is still suitable for other areas.
SWOT Analysis (Strengths, Weaknesses,...