Banyan Tree Case Study

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AB3601 Strategic management | Banyan Tree Resorts & Hotels | Critical Thinking Assignment | | Zhong Yicen | U1110421ASeminar Group 7Instructor: Professor Wan Chew Yoong |

I, Zhong Yicen, declare that this assignment is my own work, unless otherwise referenced, as defined by the NTU policy on plagiarism. I have read the NTU Honour Code and Pledge. http://www.ntu.edu.sg/home/yclai/ Signed…………Zhong Yicen…………. Date ………3/9/2013.……. |

What is Banyan Tree doing to target travellers seeking a “Banyan Tree” experience but are more price-sensitive? Do you think this will work? Please elaborate.
Banyan Tree Hotels and Resorts (BTHR) identifies itself as the pioneer company to adopt the concept of designing individual villas as love nests for couples on holidays. “Banyan Tree experience” emphasises on complete privacy and provides an oriental getaway so customers can indulge and rejuvenate themselves within the villas, away from the bustling cites. Unlike most top-class hotel chains and resorts, BTHR saves on lavished common areas such as the lobby, and focuses on the interior décor and facilities of the villas by having themed bedrooms or installing private swimming pools for the Pool Villas. Furthermore, BHTR reverts to traditionally-styled spas which are non-air-conditioned and masseuses are barefoot, allowing them to set a wider price range from as low as US$33 to target price sensitive travellers. These strategies create a competitive advantage to capture the price sensitive customer bases who are seeking for a “Banyan Tree experience”.
We could use Michael Porter’s Five Forces analysis to assess if BTHR’s strategies are working as well as its competitiveness in the market.
Threat of new entrants or potential competitors- Low pressure: There are high barriers to entry such as heavy investment costs

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