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Banyan Tree Case Study

In: Business and Management

Submitted By 5182781426
Words 1489
Pages 6
Case Study

Presented to
Associate Prof. Guntalee Ruenrom, Ph.D. & Ajarn Yayus Mak

Prepared by
MBA English Program #3

Kotchaphan | Laochareon | 518 27814 26 | Ratanapong | Sanpote | 518 29421 26 | Thanan | Sastarasadhit | 518 28530 26 | Karit | Yuvaboon | 518 28094 26 |

For the Course of
2605691 Seminar in Marketing Management
Faculty of Commerce and Accountancy
Chulalongkorn University

QUESTION 1 : Identify the primary issues in the case.
Between 1997 and 2005 a series of crisis severely challenged the hotel industry and stake holders, especially in asia region, which never before have so many issues that causes a crisis that has lasted that long
With majority of properties located in asia, Banyan tree was hit hard by the crisis causing poor profitability in 2005. Foreseeing the risk of focusing its core operation in one region, Mr.Ho, CEO of Banyan tree initiates the expansion plan of banyan tree to open new properties in new location in order to minimize the risks. The IPO was executed to increase the capital for this expansion.
However, the key issue of this aggressive expansion in how banyan tree can maintain its respective qualities across the chain due to: * The limitation of manpower and infrastructure to consistently deliver banyan Tree’s experience * The danger of bran dilution in case of banyan tree expands into territories that may have a negative impact on the brand. Its very important that banyan tree ethos, culture and skill set do not disappear with the process of the growth. Tha ability to manage growth while at the same time prevents brand dilution is crucial when considering about doing a mega expansionary project. * The emergent of competition in niche markets also happened as banyan tree enjoyed the exclusivity for some time. Maintaining a niche position as market…...

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