After applying the VRIN criteria to the resources given in the case, 3 key intangible resources have been identified in helping Banyan Tree (BT) achieve strategic competitiveness and above-average returns. The analysis is summarized in the below table. Resources | Valuable? | Rare? | Inimitable? | Non-substitutable? | 1. Brand | Yes – BT has successfully tapped into its target market segment because of its strategic brand positioning and image. | Yes – The only resort targeting the luxury premium market then, its differentiating “Banyan Tree experience” leads consumers to choose BT over its rivals. | Yes – Difficult if impossible for other brands to build a reputation exactly similar to BT’s, especially since BT has first-mover
Such careful brand management efforts differentiated the BT brand from its rivals, gave it first-mover advantage making it difficult for competitors to emulate or even catch up with its success, and contributed to BT’s domination of the premium luxury resort market within five years of its start-up.
Product Development & Innovation
Understanding the importance of keeping experiences “fresh” in any service industry, the BT founders knew that the ability to constantly surprise its guests and surpass their expectations was very valuable. Management held multiple brainstorm sessions in order to come up with new and novel ideas and also ways to improve existing product offerings. Also, collating feedback from guests, wholesalers and other business partners allowed management to adopt any worthy suggestions given. New ideas and experiences would act as differentiating points that set BT apart from other luxury resorts and kept customers coming back.
To continually provide novel experiences which guests had previously not tried, as well as to enhance customer experiences, BT made incremental product innovations and expanded the variety of services offered in order. For example, one of the bedroom suites of the two-bedroom villas was converted into a Spa Pool Villa, savings guests a trip to the spa complex and surprising guests with the added convenience. Also, some product innovations successfully emphasized the resort’s winning attributes. For example, an