Sustainability of a Brand During Rapid Global Expansion, Case Study Example

What value propositions did Banyan Tree offer as an experiential brand?

Bayan tree is an experiential brand which offers its consumer more than a luxury place to stay on special occasions. An experiential brand goes far beyond the core product or service it is providing. The company has worked hard to connect with the customer’s desire for a total experience when they are choosing a place to stay. The value propositions offers consumers not only functional value, but also emotional value. They appeal to the visual and luxury that the customer desires allowing them to have an experience unlike any other. The value proposition allows them to see, use, and feel their experience at Banyan Tree. The company goes beyond the basic amenities offered to individuals who are staying in the hotel. They provide signature features such as a tropical garden spa which provides unique products and services to their guests. It is a method to pamper the guests and allow them to see why Banyan Tree is far different than their competitors. The hotel strives to provide a value proposition which delivers intimacy, rejuvenation, and romance.

Evaluate Banyan Tree’s expansion plan. What are the potential risks that Banyan Tree should be aware of and how can it mitigate such risks? Based on current resources, is it realistic and achievable?

There are several critical areas which Banyan needs to consider. For example, the basic existing infrastructure of the new location. The potential to establish a premium niche in their new location. There is also the accessibility of the location selected. Despite the careful selection plan for the new location, there are some risks which are beyond Banyan Tree’s control. There is inconsistent quality standards based on cultural and location differences. The potential for legal and political instability is also a consideration. Based upon the current resources, the new project is both achievable and realistic. The tourist department has been hit hard by natural disaster, therefore the potential for obtaining new clientele is significant. Investing more money in the new expansion plan will secure future clients for the new hotel. The lack of competition and the quality of the hotel speaks for itself. The next issue is the cultural diversity in which presents the risk associated with the expansion. Based on the current resources, they can embrace the differences and mandate the changes to be in compliance with their standards.

Conduct a brief financial analysis of Banyan Tree’s businesses and make recommendations for its growth strategy based on this analysis.

It is important to consider that global tourism has been on an incline for over a decade. Banyan Tree ran its expansion plan in Asia, and from 2000-2005 they saw an increase of 2.4%. As of 2006, they had 18 hotels and resorts, 53 galleries, two golf courses, and 49 spas. This ownership expanded over nine countries. The company faced a significant loss in 2005 when the Tsunami hit. This required Banyan Tree to make revisions for their growth based on the analysis. First, Africa is the fasted growing market, therefore expansion in this market is recommended. It would be ideal for the Banyan Tree strategy to expand into this market. It has a vast market which is unsaturated and is growing as a popular destination. It provides lower labor opportunities and minimum competition in this unsaturated market. Based on the growth strategy analysis the best direction for the company is to target Africa.