Expanding Service Operations Across Borders - Essay Example

Expanding Service Operations across Borders Executive Summary Under the management of Mr. Ho Kwon Ping, the company of Banyan Tree Hotels and Resorts was positioned to provide to a niche marketplace segment that desired private and personal accommodations exclusive of the anticipation of flashy chain hotels. Subsequent to that, Banyan Tree began operations within the sumptuous resorts market within Phuket and afterward expanded to Bintan, as well as Maldives. Its triumph can be accredited to that management comprehended what the consumers value, built the Banyan Tree brand, and put that understanding into the application to form a truly distinguished consumer experience. As the corporation goes international, it faces the new-fangled possibilities, presented through increased funds, and new predicaments, for instance, demands enforced by shareholders. Table of Contents Cover Page………………………………………………………………………………………1 Executive Summary……………………………………………………………………………..2 Table of Contents………………………………………………………………………………..3 Background Issue………………………………………………………………………………..4 Statement Analysis of the Problem……………………………………………………………...4 Alternatives Analysis and Selection Criteria…………………………………………………….4 Key success factors and the distinctive competencies that Banyan Tree Hotels & Resorts (BTHR) has been developing over the years…………………………………………….4 Choice of the target segment……………………………………………………..4 Positioning and branding strategy.……………………………………...………..5 Product/service design and delivery……………………………………………...7 Aggressive internal marketing……………………………………………………7 Winning the reinforcement of local communities and public interest groups……8 Pioneer status: first mover advantage………………………………………….....9 Pro-environmental business practices…………………………………………….9 The Service Offering……………………………………………………………………..10 Operating Strategy to pursue and Further Steps taken to Implement it………………….13 Recommendations ………………………………………………………………………..……..14 Action and Implementation Plan………………...………………………………………………15 Reference List………….………………………………………………………………………..16 Background Issue Banyan Tree Hotels, along with Resorts had unquestionably accomplished a distinguishing position within the sumptuous resorts business. One of the major predicaments, which lay at the forefront of the business, was the manner within which it could maintain its competitive advantage to preserve its marketplace position. Despite the fact that Banyan Tree took pleasure in a high-flying status amongst its competitors as soon as it initially started out, since then, there has been greater competition than before from different contenders offering comparable products, as well as services. Statement Analysis of the Problem This essay tries to concentrate on a number of aspects of the manner in which Banyan Tree has accomplished its principal player status within the lavish resorts and health resort market. It will also demonstrate how it is able to influence its strong points and distinctive competencies to handle its competitors in the market. Alternatives Analysis and Selection Criteria Key success factors and the distinctive competencies that Banyan Tree Hotels & Resorts (BTHR) has been developing over the years. Banyan Tree’s triumph might be accredited to a general well planned and executed exterior and interior marketing plan, specifically: Choice of the target segment The huge price gap within the lavish resorts market imply that customers who are from the middle upper class are supposed to either draw out to make ultra deluxe resorts payments, for instance, Aman, or decide to be guests at resorts, nonetheless luxurious, accommodated to the masses of people. Ho found out that the business opening brought about by the gap within the resorts marketplace. This is because room existed for pricier resorts and additionally elite, which would accommodate to the middle upper class of individuals better. These customers had better spending influence compared to the average customer within the mass marketplace, and would have the capacity to manage to pay for and ready to pay for an elite, premium service (Enz & Farhoomand, 2009). Banyan Tree target has 84% of visitors who come in pairs who want some intimacy and romance. The majority of them are between 30 years and 50 years. They are wealthy not essentially famous. For a typical stay at the resorts of 4 nights, every individual spends roughly $2500. The visitors are individuals who desire finer things and an elevated service level exclusive of an astronomic cost. The market target for Banyan includes individuals who visit the resorts so that they can discover their inner personality. Other groups take account of corporate clientele (10%) and family units (6%) (Aaker, 2011). Positioning and branding strategy Angsana, the sister trademark of Banyan Tree underneath the given name of Colors of Angsana, the Angsana trademark also tendered an experience, which was centered on civilizing sightseeing and soft exploration, often positioned in less visited destinations, for instance, Laos, Sri Lanka, as well as China. Made up of an assortment of boutique resorts, along with hotels, every one was an obtainable property, which had been renovated with modern adjustments of the aboriginal culture and legacy of its particular locality. Colors of Angsana’s first appearance was in August 2003 within Shangri-La, Yunnan, China in the midst of the Gyalthang Dzong inn. Through both Banyan Tree and Angsana, distinctive consumer segments were aimed. The inspiration behind this distinguishing branding approach was to increase its consumer base at the same time as minimizing brand strength and cannibalism. What is more, every line of brand and product made way for cross-selling opportunities that helped to decrease the undesirable impact of exterior events, for instance, SARS and radical bombings. Being positioned in different nations and having a geologically diverse consumer base mitigated the impact of this kind of events. Banyan Tree’s experience demonstrates that its products were proficient of being expanded to tap into novel market sections (Enz & Farhoomand, 2009). Spas were an appreciated resorts and hotels characteristic and were a fundamental brand experience part. The Banyan Tree Spa educational institution at Banyan Tree Phuket offered its employees of more than five hundred therapists, academic and practical education. Moreover, the corporation was time and again approached by additional reputable hotel businesses to set up a Banyan Tree or even Angsana Spa. The aforementioned opportunities permitted the corporation to spread the spa business out into new-fangled markets and prop up its brand exclusive of incurring capital expenses (McLaughlin & Fitzsimmons, 1996). Banyan Tree Spas, along with Angsana Spas presented distinctive product contributions and undertakings. Banyan Tree Spas presented a more conventional, deluxe environment amid an archetypal design and the utilization of indigenous herbs and seasonings and more multifaceted methods as treatment recipes. On the other hand, Angsana Spas presented a more contemporary and colorful interior decoration with prominence on flowers, as well as fruits. Banyan Tree created a brand known as Oberoi Spas, which operated underneath spa administration contracts with the India Oberoi Group, merged the Oberoi quality practices with the expertise of Banyan Tree spa (Aharoni & Nachum, 2000). Banyan Tree characteristically generally used separate supply channels for every brand to have its brands positioned. For the year 2005, the greater part of Banyan Tree reservations were made unswervingly through the company’s local reservation hubs or through reservation teams that deal with property. The Banyan Tree brand power had allowed the corporation to attract valuable business connections and associates, for instance, American Express, Oberoi Group of India, MasterCard worldwide, Visa International, and the Citibank. Banyan Tree sustained brand visibility and connection with high-end newspapers in major feeder marketplaces, for instance, the United Kingdom Tatler and Condé Nast Traveller (Enz & Farhoomand, 2009). Product/service design and delivery Within the initial two years subsequent to Banyan Tree’s opening, a worldwide advertising bureau ran the business’s marketing relations. The bureau also came up with the Banyan Tree logo, and jointly with the administration introduced the “Sanctuary for the Senses” marketing tagline. Despite the fact that Banyan Tree resorts were furnished lavishly, they were endorsed as offering romantic, as well as intimated ‘smallish “ inn experience, instead of the deluxe accommodation as hyped by the majority of competitors at the time. The experiences of Banyan Tree were marketed as cherished private moments. Banyan resorts perceived themselves as putting the arena for guests to construct those treasured moments (Chitale & Gupta, 2011). Aggressive internal marketing Every Banyan Tree worker was educated to the essential standards of enterprises that offer five-star service, which take in greeting guests, committing their first names to memory, and foreseeing their requirements. Additionally, a number of workers acquired a “Banyan Tree Experience” taste as a fraction of their instruction. The administration trusted that staying at Banyan Tree would assist workers comprehend better what visitors will experience and, therefore, improve their special experience delivery for the guests. Workers were permitted to exercise resourcefulness and sensitivity in the manner within which they carried out their tasks, such as spreading beds in stylish ways and in line with the premium values of resorts (Enz & Farhoomand, 2009). Winning the reinforcement of local communities and public interest groups Banyan Tree drew in the local population in every business facet, even as the inns and resorts were under construction. Villas were built with as much native substance as possible, the majority of which local merchants supplied. Conventional arts and handworks that harmonized the villas’ visuals were also bought from community artisans. The corporation believed in constructing lucrative resorts, which would profit the neighboring environment and put into local financial systems through the conception of service and community expansion projects. Therefore, besides offering employment opportunities for the community, the corporation brought trade to the community farmers and merchants by buying fresh produce from the community. Whenever probable, the corporation supported other local tourism business enterprises that would profit the wider regional community and perk up the visitor exciting activity. A major illustration, being the earliest fully operational private facility for research to be completely funded and managed by a resort is the Banyan Tree Maldives Marine Lab. The Laboratory seeks to front conservation efforts within the Maldives to guard and redevelop coral and aquatic existence for the tourism business future, along with promote consciousness and schooling of this regional, community field (Enz & Farhoomand, 2009). Distinguishing that the difference in standards of living and ways of life between visitors and the regional community may create logic of estrangement within the regional population, a Community Relations branch was established to expand and run community outreach projects. After talks with society stakeholders, several financial support scholarships for poor kids were given, an educational institution and childcare institution were constructed, lunches and social gatherings for the aged were hosted, and regional cultural and spiritual activities were sustained (Yusuf, Nabeshima & World Bank, 2012). Pioneer status: first mover advantage Since the setting up of Banyan Tree in the year 1992, the resort and spa have had a multicultural blend of proficiencies and experiences that contributed considerably in the product improvement, branding, product-service plan, and building and operations areas. Of its five thousand workers, 35 countries had representatives. Its forty top managers were from twenty dissimilar nations. Ho trusted that this offered it a pioneer status giving it a first mover advantage through this multiplicity of backgrounds, proficiency sets, and civilization, which additionally gave Banyan Tree an authentic global viewpoint and combined strength and resilience within a variety of environments (Das, 2011). The earliest Banyan Tree resort was instituted in 1994. The trademark was targeted chiefly at highly wealthy travelers wanting a lavish retreat somewhere they would have a passionate, intimate and invigorated experience. Positioned within the niche resort, hotel and spa marketplace sector, Banyan Tree established the concepts, which turned out to be the signature characteristic of numerous of its resorts and spas (Enz & Farhoomand, 2009). Every Banyan Tree branded hotel, spa, along with gallery replicated the indigenous environment, civilization, and legacy of their localities. The Angsana Spa was set up in1999 and was so excellently received that the corporation rapidly set up five extra such spas within a variety of inns in Thailand. In the year 2000, Angsana, the sister product of Banyan Tree, was opened. Angsana tendered an inspirational and modern-day experience reproduced via its interior house design and spa management. Pro-environmental business practices The Green Imperative Fund was founded in 2001 to develop and honor the company’s ecological conservation and society expansion efforts. Banyan Tree and Angsana resorts and hotels guests were offered a chance to donate two dollars or one dollar correspondingly, for every night they spent at the inn or resort. The business would equal the guests’ donations to build up the fund. In March, the year 2006, the Green Imperative fund had collected roughly 1 million dollars. A team of executive workforce affiliates who come from the locality made commendations for projects that would be endorsed. These projects varied from marine protection to schooling and health support (Davis, 2010). Ho supposed that Banyan Tree, as well as Angsana visitors, were individuals who had buying power and knowingly chose to use that buying power to bring their value links into line with Banyan Tree value links. In that logic, CSR was viewed as a cost-effective proposal that prevailed in the assessment of every stakeholder and had acquired various rewards for the business, which in turn created brand consciousness as Banyan Tree later came to be distinguished as a business that espoused fine CSR applications. As a component of the non-cost-founded proprietary benefit proposal for competition that is sustainable, CSR was extremely ingrained within the experimental product and service value of the business. Until August the year 2006, though, company growth had been resolute mostly within the developing nations from Asia to the Pacific expanse, where CSR applications had an instantaneous and perceptible impact (Enz & Farhoomand, 2009). The Service Offering Unlike the majority other resorts at that time, Banyan Tree resorts was made up of individual villa, which included a private swimming pool, spa treatment area, or even Jacuzzi, each intended to tender guests individuality and utmost seclusion. For instance, a guest had the option of skinny-dipping within the private swimming pool within his villas with no disturbance of view of other guests, placing him in a globe of his own. Every Banyan Tree hotel and resort was constructed around the conception of offering place logic to reflect and develop the civilization and destination legacy. This is replicated in the structural design, furnishings, scenery, plant life, as the services that they offer (Enz & Farhoomand, 2009). To construct an exotic sense of sensuality and make sure the seclusion given to visitors, the resort is devised to merge into the indigenous setting of the neighboring environment and utilize the natural plant life and stones as the screen of privacy. Banyan Tree resorts fixtures were intentionally native to express how exotic the place is with its rich taste and lavish feel. The health resort within Seychelles was built around the huge granite stones and flourishing plant life to provide an open-air experience in total privacy. The local zest that the resort was also replicated within the services they put forward, a number of which were exceptional to specific resorts. Workers were permitted to contrast the service delivery method to local civilization and application, given that these were unvarying with the guarantee of romance, as well as intimacy by the brand (Gong, 2013). Therefore, within Phuket, for example, a pair could have the benefit of eating dinner on a customary Thai stretched tail boat, which comes with private Thai singers while sailing instead of eating dinner in an eatery. Banyan Tree Phuket additionally offered a package for weddings in which two individuals who wanted to get married were consecrated by Buddhist parsons. Within the Maldives, marriage ceremonials could be done below the water surface amongst the corals. Visitors had the choice of taking their dinner in a sheltered sandbank with simply their personal cooks in the company of stars in the sky, and watch sundown while toasting wine (Lovelock & Yip, 1996). Products, along with services were envisioned with the preferred consumer experience in consideration. One type of these products was the package of Intimate Moments, which was particularly designed for couples visiting Banyan Tree resorts. This was put forward as a surprise at what time guests came back to get their villas beautified with lit candles, burning oil lantern, flower petals all over the villa, and sheets of satin spread on the bed. There is also a bottle of wine that has been cooled, tidbits put next to the outside bath that is adorned with flowers, candles, along with bath oils. The pair was given an assortment of scented massage oils, which advances those intimate times (Enz & Farhoomand, 2009). One more resorts draw was the Banyan Tree Spa, located at each property that Banyan Tree owns. The humid garden spas conception pioneered by presenting an assortment of scented oil massages, in addition to face and body treatments for beauty, utilizing customary Asian remedies, with an option of inside and outside the house treatment. The products utilized for the spa were natural, native products created from local aromatic plants and seasonings. Non-clinical in conception, Banyan Tree spas depended majorly on the human touch ideas instead of using technologically advanced equipment that consumes energy (Lewis & Slack, 2003). The spa experience got a promotion as an intimate experience that was sensorial, which would revitalize the body, brain, and soul. In addition, it was largely aimed at a pair of persons who would take pleasure in their spa treatments collectively. Chang was able to set up the Banyan Tree Gallery, a trade outlet showcasing native cottage crafts. This is line with the philosophy of Banyan Tree of preserving local culture and legacy, and sponsoring crafts. Gallery outlets of Banyan Tree were established in every resort (McKeown, 2010). Pieces sold were created by neighborhood artisans and incorporated conventionally woven fabrics, clothing, jewelry, handworks, tribal art, along with spa accessories, for instance, incense candles and oils for massage, which are handmade and guests could utilize them at home to reconstruct the experience of Banyan Tree. The Gallery of Banyan Tree got on projects to promote the diverse communities within the localities that Banyan Tree resorts are located, and worked directly with community cooperatives non-profit advertising agents to offer the artisans profitable employment. Banyan Tree acted as a channel for marketing for Asian handworks such as weaving of baskets and lacquer ware. Banyan Tree also taught its consumers regarding the handworks with a write-up for a guide. As Banyan Tree was carrying out its Gallery operations, the society outreach expanded from Thailand to many areas such Cambodia, India, Indonesia, Malaysia, Singapore, Sri Lanka, and Nepal (Enz & Farhoomand, 2009). The efforts that Banyan Tree made resulted in n extremely elite holiday feeling and acts as a delight for every special instance such as honeymoons, as well as various types of anniversaries, for instance, weddings because Banyan Tree has a structural design, place logic, and romance promise. Operating Strategy to pursue and Further Steps taken to implement it The operating strategy that would be pursued will be expanding its geographic stretch. This would be done by considering venturing into localities within different parts of the globe that have a potential for quick success such as South America, Middle East, as well as Southern Europe. This operating strategy will open new Banyan Tree outlets around the globe, and keep in mind that the chain of resorts and hotels do not have value in quantity, but the quality of experiences. Further steps that would be taken to implement it include minding the brands’ concentration and be cautious not to have the brands diluted (Enz & Farhoomand, 2009). The tactical fit of the corporation’s brand array might have to be considered since it is made up of Banyan Tree and Angsana. It is of the essence that Banyan Tree maintains its competitive benefit to avoid losing its distinguishing position within the market. This is in the outlook of diverse competitors that tender comparable goods and services. Recommendations It is recommended that Banyan Tree accomplish branding uniformity through managing by brand managing of the assortment by trade name would attain more uniformity within branding and market positioning, as well as making it more trouble-free to bundle goods and cross-sell, even though such an understanding would necessitate replication within resources for a range of functions. Action and Implementation Plan Banyan Tree can merge the Asian civilization and legacy with first-class service and magnificence, at the same time focus on Corporate Social Responsibility by promoting societal causes. This can be done by find a sense of balance between being idiosyncratically Asian and coming up with an additionally globally oriented image. This is the best execution plan because individuals feel more apt to support companies that have a positive image such as Banyan Tree. References Aaker, D. A. (2011). Building Strong Brands. Simon and Schuster. Aharoni, Y., & Nachum, L. (2000). Globalization of services: Some implications for theory and practice. London: Taylor & Francis. Chitale, A. K., & Gupta, R. (2011). Product policy and brand management: Text and cases. New Delhi: PHI Learning. Das, T. K. (2011). Strategic alliances in a globalizing world. Charlotte, N.C: Information Age Pub. Davis, J. (2010). Competitive success: How branding adds value. Chichester, West Sussex, U.K: John Wiley. Enz. C. & Farhoomand, A. (2009). Banyan Tree: Sustainability of a Brand During Rapid Global Expansion. Asia Case Research Center. Gong, Y. (2013). Global operations strategy: Fundamentals and practice. Berlin: Springer. Lewis, M. & Slack, N. (2003). Operations Management: Critical Perspectives on Business and Management.Taylor & Francis. Lovelock, C. & Yip, G. S. (1996). Developing Global Strategies for Service Businesses. California Management Review. 38(2): 64-86. McKeown, L. (2010). Predictable success: Getting your organization on the growth track--and keeping it there. Austin, TX: Greenleaf Book Group Press. McLaughlin, C. P. & Fitzsimmons, J. A. (1996). Strategies for globalizing service operations. International Journal of Service Industry Management, Vol. 7 No. 4. Yusuf, S., Nabeshima, K., & World Bank. (2012). Some small countries do it better: Rapid growth and its causes in Singapore, Finland, and Ireland. 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