The Dutch Flower Cluster Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Dutch Flower Cluster Case Study Help

Competitive Rivalry:

The competitive rivalry in the flower industry is considered to be high. The underlying reason behind the high rivalry is that the flower industry is composed of number of dominating and growing player. The dominating player are China, Kenya, Columbia and Ecuador. Due to industry’s attractiveness more and more players are trying to enter into the market. As different countries have different climatic conditions, which support the cultivation of the different flowers also increase the competition in the industry.

Threat of Substitute:

The threat of substitute for flower industry in Netherland is considered to be moderate. The substitute of the flowers are the gifts and different greeting cards that are considered to be less attractive in comparison to the flowers so the people demands the flowers during occasions. However, the life of flower is very short which allow the users to switch to gift or greeting cards or something else that is long lasting. Furthermore, the innovative flowers are expensive which also allow the user to switch on substitute which is less expensive which ultimately improve the threat. The flowers are easy to carry and considered to be still more convenient object to give on special occasions like mothers day, Valentine’s Day, birthdays, funerals and other occasions in comparison to other substitute like gifts and greeting card, which reduce the threat of substitute.

Suggestive Alternatives

Alternative-1: Continue Locally

One of the suggestive alternative is that the Dutch flower should continue its production internally and look for renewable energy for the purpose of reducing the cost. This would help the company to reduce its dependency on the fossil gas and use environment friendly practise. As a result of which, the company would reduce its production cost.

Alternative-2: Stop Production Locally

Another suggested alternative for the Dutch flora industry is to stop production internally and only retain auction and logistic in Netherlands. Through this, the company would be able to reduce various cost, such as: transportation and cost and would allow the company to cultivate its flowers at favourableclimatic conditions.

Alternative-3: Invest in Other Countries and Develop Online Application

Another alternative for the company is to invest in other producing countries and develop an online application of the auction. As the declining interest towards the physical auction, online auction seems to be attractive and allows the company to maintain its customer alongside the maintenance of the competitive advantage in the industry. Furthermore, the companyashould also invests in technological advancement with the aim of developing a new and environmental friendly process that would allow that company to reduce its various overhead cost and improve its profit margin as well.

Recommendation

On the basis of above analysis all the alternatives are seems feasible to the Dutch flower industry, but alternative-3 seems to be more feasible, having a capability to reduce the challenges for the company, so it is recommended that the company should implement and introduce its products in different market with an aim to improve its customer base and maintain its competitive position. The continuous technological innovation would reduce the effects of environmental changes on production of the flower. Due to reduction in auction participation, the industry should introduce the online applications for selling its flowers. Through the technological advancement, the industry would also find new methods of cultivation of the flowers that would improve the quality and reduces cost. Additionally, the growers should improveits quality of flowers and produce new varieties in order to improve the customer base and to earn better margins.......................................

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