After applying the VRIN criteria to the resources given in the case, 3 key intangible resources have been identified in helping Banyan Tree (BT) achieve strategic competitiveness and above-average returns. The analysis is summarized in the below table. Resources
| 1. Brand
| Yes – BT has successfully tapped into its target market segment because of its strategic brand positioning and image.
| Yes – The only resort targeting the luxury premium market then, its differentiating “Banyan Tree experience” leads consumers to choose BT over its rivals.
| Yes – Difficult if impossible for other brands to build a reputation exactly similar to BT’s, especially since BT has first-mover advantage.
| Yes – Proper replication of the BT brand and the human efforts that went into building it is impossible and consumers are unlikely to find an exact substitute for what the brand encompasses.
| 2. Product Development & Innovation
| Yes – Fresh, novel experiences attract new and old customers.
| Yes – The types of innovative services and products are only available at BT and nowhere else.
| Yes – Complexity of innovations and necessary staff knowledge make duplications costly.
| Yes – Hard to replicate the experimental and innovative culture at BT.
| 3. Local Staff
| Yes – BT lives up to their brand promise of exceptional service standards that creates loyal customers.
| Yes – Consumers benefit from flexible service of high quality that emphasizes customer satisfaction at BT.
| Yes – BT’s service culture and staff knowledge and training are tough to imitate.
| Yes – Hard to recreate the same kind of service ideas and quality that BT staff have in place.
| Table 1. Analysis using VRIN criteria
The BT founders first identified a gap in the luxury resort market in Phuket that they sought to fill with their value proposition of a premium but not unaffordable luxury resort reaching out to consumers looking for romance,...
Please join StudyMode to read the full document