Banyan Tree Strengths & Weaknesses

1) Well established and renowned brand name

Since its establishment in 1994, the company's flagship brand, Banyan Tree, had won more than 600 international tourism, hospitality, design, and marketing awards, some of which included the "Best Resort Hotel in Asia-Pacific".

BT has successfully tapped into its target market segment because of its strategic brand positioning and image.

BT positioned itself in the niche upscale category of providing romantic, intimate and exclusive holiday experience to its guests. It was coupled with a natural serene setting with tailor made services. BTHL was exceptionally successful in positioning its point of difference in the minds of its customers.

2) Integrated business model

Banyan Tree's innovative business model is based on 7 business segments generating multiple income streams that is unique in itself within the hospitality industry. This formula of developing and managing complementary product offerings with in-house talent makes it difficult for competitors to duplicate with the same level of success.

3) Product development and innovation & High service standard

BT philosophy is based on providing a place for rejuvenation of the body, mind and soul - a Sanctuary for the Senses. Banyan Tree property is designed to fit into its natural surroundings, using indigenous materials as far as possible and reflecting the landscape and architecture of the destination. These fresh, novel experiences attract new and old customers.

BT lives up to their brand promise of exceptional service standards that create loyal customers. High qualities of flexible services to develop customer satisfaction.

Eg. Therapists are professionally trained at Banyan Tree Spa Academies.

1) Probable brand dilution

Adopting a brand extension strategy to bring the new brand, Angsana, under the umbrella "Banyan Tree" brand, on the other, could have led to "Banyan Tree" brand dilution and dented the customer perceived value because the customers no longer would be able to identify with BTHL as a premium and exclusive experience.

2) Inconsistent quality standard due to cultural diversity

Operating in various locations around the world/continent gives Banyan tree a challenging task in maintaining the quality standard as the manpower in different locations can have different mindset, attitudes, beliefs, and values.

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