Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base
This case describes Banyan Tree Resorts & Hotel's rapid growth starting from a single resort converted from a disused tin mine in Phuket, Thailand, to become an international resort operator and one of Asia's top 20 brands. It explores the realisation of an innovative lifestyle concept, the subsequent challenges involved in replicating its original success in different parts of the world, the company's marketing strategy, and the development of service operations capabilities to back the brand, as well as the challenges faced in extending the brand into new businesses including branded goods and a travel portal.
Authors :: Peter J. Williamson, Arnoud De Meyer, Hwee Chua Chei
Swot Analysis of "Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base" written by Peter J. Williamson, Arnoud De Meyer, Hwee Chua Chei includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Banyan Tree facing as an external strategic factors. Some of the topics covered in Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base case study are - Strategic Management Strategies, Project management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing commodity prices,
supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Banyan Tree, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Banyan Tree operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base can be done for the following purposes –
1. Strategic planning using facts provided in Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base case study
2. Improving business portfolio management of Banyan Tree
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Banyan Tree
Strengths Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Banyan Tree in Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Banyan Tree are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Strong track record of project management
– Banyan Tree is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Banyan Tree
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Banyan Tree does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Banyan Tree in the sector have low bargaining power. Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Banyan Tree to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Banyan Tree has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Banyan Tree is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Banyan Tree is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Banyan Tree in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Banyan Tree has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Banyan Tree has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Banyan Tree is one of the most innovative firm in sector. Manager in Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Banyan Tree has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Analytics focus
– Banyan Tree is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Peter J. Williamson, Arnoud De Meyer, Hwee Chua Chei can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Banyan Tree digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Banyan Tree has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base, it seems that the employees of Banyan Tree don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Need for greater diversity
– Banyan Tree has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
No frontier risks strategy
– After analyzing the HBR case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Banyan Tree has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Banyan Tree is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Peter J. Williamson, Arnoud De Meyer, Hwee Chua Chei suggests that, Banyan Tree is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Banyan Tree has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Banyan Tree 's lucrative customers.
Slow to strategic competitive environment developments
– As Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base HBR case study mentions - Banyan Tree takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Banyan Tree has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Banyan Tree supply chain. Even after few cautionary changes mentioned in the HBR case study - Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Banyan Tree vulnerable to further global disruptions in South East Asia.
Opportunities Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base are -
Developing new processes and practices
– Banyan Tree can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Banyan Tree can use these opportunities to build new business models that can help the communities that Banyan Tree operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Banyan Tree can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Banyan Tree can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Banyan Tree has opened avenues for new revenue streams for the organization in the industry. This can help Banyan Tree to build a more holistic ecosystem as suggested in the Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base case study. Banyan Tree can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Banyan Tree can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Banyan Tree to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Banyan Tree can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Banyan Tree in the consumer business. Now Banyan Tree can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Banyan Tree to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Using analytics as competitive advantage
– Banyan Tree has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Banyan Tree to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Banyan Tree to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Banyan Tree to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Banyan Tree can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Banyan Tree.
Technology acceleration in Forth Industrial Revolution
– Banyan Tree has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Banyan Tree needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Consumer confidence and its impact on Banyan Tree demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Banyan Tree is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Banyan Tree in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base, Banyan Tree may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Regulatory challenges
– Banyan Tree needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Banyan Tree with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Banyan Tree
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Banyan Tree.
High dependence on third party suppliers
– Banyan Tree high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Banyan Tree business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Banyan Tree Resorts & Hotels: Building an International Brand From an Asian Base is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Banyan Tree needs to make to build a sustainable competitive advantage.
