BTHR foremost saw a spread in the luxury resort market in Phuket, and sought to tap into this market with a value proposition of a premium but low-cost luxury resort. Strategic trade name direction was therefore critical. Having targeted a niche market, Banyan Tree had the first-mover advantage amongst its rivals. But it was its consistence in presenting its trade name promise that led to viva-voce recommendations on “ Banyan Tree experience ” distributing rapidly.
Besides, to vouch consistence and continuity in trade name edifice, BTHR centralised its long-run selling scheme and even allocated selling budget to both its consumers and jobbers. Likewise, BTHR made an attempt to keep good relationships with the authoritiess and local communities, which contributed to its strong trade name in Asia.
Within a twosome of old ages, BTHR was awarded legion international awards and awards, and it efficaciously capitalised on these awards and awards to construct its trade name equity rapidly.
Valuable: With its careful trade name direction and consistent trade name bringing to its invitees, trade name trueness was created. This enabled a premium charge and made international enlargement possible. Furthermore, its first-mover advantage made it tough for its challengers to fit its success.
Rare: Bing the first resort to supply a luxury adjustment with love affair, familiarity, privateness and greening, it managed to distinguish itself from its rivals. Furthermore, it can be seen that BTHR has the capableness to construct strong customer-based trade name equity, as non many of its rival houses can associate to this proposition of love affair and familiarity.
Costly-to-imitate: It is about impossible to emulate BTHR ‘s trade name as legion capablenesss across the value concatenation contributed to its success – its first-mover advantage, strategic trade name image/positioning, advanced and sole service by Banyan staff, and extended selling.
Non-substitutable: There is no uncertainty that many resorts were aiming the luxury premium market, nevertheless, none of them are perfect replacements of Banyan Tree. Likewise, the strong trade name equity and human attempts BTHR had put into edifice it is non easy replicable.
II. Innovation Resources: Merchandise Differentiation and High Quality Service
BTHR ‘s capacity to introduce led to its ability to make merchandise distinction and high quality service, which kept clients returning. It differentiated its offering by being the first in Asia to follow the construct of a “ non-clinical ” garden watering place with an oriental feel. Besides, BTHR placed accent on the interior decor and installations of the Villas to heighten the “ Banyan Tree experience ” , with each Villa holding a private landscaped garden and an alfresco sunken bathing tub. It offers a assortment of watering place bundles and culinary arts tailored to clients ‘ likings excessively.
Additionally, Banyan Tree staff were encouraged to give advanced and sole service, to do certain its invitees feel that they were paid particular attending. Alone merchandise offerings such as customised nuptialss even included a particular touch of local civilization.
Valuable: BTHR was successful in winning the Black Marias of its clients as its offers them advanced and fresh experiences. This resulted in client trueness and viva-voce advertisement, which generated a sustainable beginning of gross.
Rare: Such merchandise distinction and customised services were merely available at BTHR. Besides, the merger of Banyan staff experience and BTHR civilization adds on to its exclusivity.
Costly-to-imitate: BTHR ‘s inventions were integratings of its civilization every bit good as staff ‘s expertness, doing it dearly-won for rivals to double them.
Non-substitutable: It is hard for rivals to retroflex the high quality and customised services offered by Banyan Tree. Furthermore, the eternal inventions and thoughts kept its invitees amazed and thrilled, doing the “ Banyan Tree experience ” particular and non-substitutable.
III. Human Resources: In-house Management Capabilities
Banyan Tree sets itself apart by holding strong support of in-house direction capablenesss.
As direction capablenesss are in-house, BTHR could construct a resort from abrasion within two old ages. Furthermore, all those involved shared BTHR ‘s corporate civilization, were familiar with each other, enabling flexible and rapid determination devising. Furthermore, with in-house design capablenesss, it can orient its design harmonizing to its value proposition of love affair and familiarity.
To guarantee efficiency, BTHR deployed pre-fabrication methods and jobs were rectified rapidly. Similarly, decision-making procedure was besides hastened by the formation of the GX Group, which consisted of the cardinal forces and expertness required to do determinations.
Besides, local staff were given the autonomy to be originative in their service to guarantee there was no spread between the degree of service and clients ‘ outlooks. This enhances staff ‘s sense of belonging in BTHR, which explains the low abrasion rate of staff. In-house preparations guarantee its staff are sufficiently skilled to supply high quality services for its targeted clients excessively.
Valuable: Having in-house direction capablenesss empowers BTHR with better control over its disbursals and merchandise inventions, leting consistent bringing of its trade name promise. Its ability to construct a resort faster than its rivals gives it a competitory border excessively.
Rare: The in-house direction capableness enables BTHR to command every portion of its undertaking development procedure. This is a rare capableness as most hotel proprietors engage external sellers.
Costly-to-imitate: Due to the big spending of capital required for its building capablenesss and resources, it would be highly dearly-won for its rivals to copy. Similarly, it is about impossible to emulate its staff preparations as they are besides conducted in-house.
Non-substitutable: Eventhough some of these capablenesss and resources can be outsourced, it would non be as value-adding to Banyan Tree as they would lose control of direction.
In decision, the cardinal resources back uping the development and rise of Banyan Tree are extremely mutualist. Together, the resources spurred the growing of BTHR as they enabled Banyan Tree to separate itself from its ‘ challengers. It is besides noticed that these are intangible resources as intangibles make it more hard for rivals to analyze and copy.