Calyx & Corolla: 1st Case

Name Instructor Course Date Calyx &Corolla Question 1 Calyx &Corolla (C&C) was a new entrant to the flower industry that was estimated to value $8 billion in 1991. The firm employed information technology, use of Fed Ex, an 800number, and catalogue to bypass the three layers of flower distribution to provide fresh products to its clients directly from growers (Salmon & Wylie, 1995). This resulted to an efficient distribution system as C&C changed the mode of flower distribution to consumers. The firm created a good niche which fulfilled its mission of satisfying consumer needs since consumers preferred fresh flowers which could last for long, and therefore C&C delivered. The efficient delivery of was the core factor to the success of C&C as the time for delivery was shorten by bypassing distribution layer providing quick delivery than the traditional delivery. Traditionally the freshest flowers purchased by consumers were from local florist that offered flowers between one and three weeks old (Salmon & Wylie, 1995). The flowers had sharply decreased in quality once they have been cut. C&C understood its ability to offer flowers that were much fresher. The firm was able to deliver flowers within 1-2 days that the traditional retailers who took 1-2 weeks to deliver (Salmon & Wylie, 1995). Exhibit 1 indicates that the rate at which sales grew surpassed the rate of cost of good sales is an indication that the firm had established a niche for itself exploiting the available resources to acquire a competitive advantage. Reduction of time to deliver from growers to consumer and cutting of intermediary commissions in the supply chain added value to the product because the firm was able to be competitive in the market by offering great products at a lower price than competitors. This firm had to offer more to growers who offered an extra service of retailer and sill had to get 80% gross margin on sales (Salmon & Wylie, 1995). Catalogues provided the best avenue for the firm ...