Royal FloraHolland: Strategic Supply Chain of Cut Flowers Business

Royal FloraHolland: Strategic Supply Chain of Cut Flowers Business

  • Case
  • Teaching Notes

With the rise in flower demand across the globe, the cut flowers industry has turned into an advanced industry for the developing and underdeveloped countries. Royal FloraHolland (hereafter FloraHolland) had initially started as a cooperative for the local suppliers, and since then it has successfully created a global robust platform. The flower production process, which focuses on offering products such as fresh cut flowers and flower buds, has been moving to countries where advantageous production conditions such as availability of lands, low labor costs, suitable climate, and fiscal incentives are available. For this reason, flower production is rising in the developing countries such as Colombia, Kenya, Ecuador, etc. With more and more occasions to celebrate and observe, and more people willing to work with flowers, the world floriculture market is growing globally in both the developed and developing countries resulting in new product innovation at cheaper cost. This growth means rising competition for FloraHolland, which will have to make changes to adapt to a newly competitive market.

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