Banyan Tree Research Paper

Competitive strategy

From the outset, the objective of Banyan Tree brand-building was to produce a sustainable program upon which to grow -- even if less costly competitors and similar ideas stepped into their very own space. Yet , after owner, Ho Kwon Ping performed his review on business landscape before the success of Banyan Tree, harsh bottom line that his businesses weren't sustainable. Banyan Tree needed a private advantage to counter price pressures. It may be a patented technology, but they are not technologically willing. So the alternative Banyan Forest came up with, was going to build a client brand which in turn had to be not only sustainable, not only in Asia, however in a globalised marketplace. If Banyan Shrub is to survive in a global marketplace - and hospitality is perhaps one of the global, mainly because high-end vacationers can easily choose between say, Spain or Phuket, Greenland or perhaps Greece -- they must be able to be the best of breed, not only in their own backyard but in whatever markets their customers is going to. Their strategy was your only approach they could be a price-maker rather than a price-taker. Any business, even with innovations, can only established its own cost until cheaper competitors come up. In Banyan Tree's circumstance, innovative features - including pool accommodations and exotic spa pavilions - are no longer a monopoly for them. If imitation is the most sincere form of flattery, they will take solace in getting flattered. But , with opponents emerging, the only method they can continue to be above value wars is to leverage the brand name to generate a cost premium and customer dedication. Branding constitutes a tremendous difference in creating competitive edge. Much of their very own decision-making with regards to a new endeavor is determined by it is impact on their particular branding. This imperative to get survival, rather than vision to be successful, is the fundamental driving force in back of Banyan Tree, against their competitors.