DUTCH FLOWER CASE ANALYSIS

1. How did the Netherlands build the most competitive flower cluster in the world in a
country with a cold and cloudy climate?

 The Netherlands by nature had fertile soil that helped them cultivating the wide
range of flowers.
 They had good information on breeding techniques, greenhouse technology that
helped them provide better quality of flowers throughout the year.
 The logistics and transportation facility of Netherlands were the best. They had
better connectivity to rest of the world through air and sea route, also to serve the
European market the railways and roadways helped to cater the needs.

2. How has the Dutch cluster sustained its leadership position for so long?

 The sandy coastal grounds in proved fertile for flower cultivation in Dutch.
 The Dutch were also the pioneers of numerous innovations in flower production
such as artificial lightning, climate controlled green-house gases, mechanized
growing and harvesting process that helped them to produce year around.
 They had good sophisticated research organizations who helped in providing
innovative solutions for better yield and quality of flowers, making the Dutch
cluster a global recognition for cut flowers.
 The better logistic connectivity for Dutch helped in improved imports and exports
from foreign countries.
 The Dutch were the leader in development and supply of floriculture propagation
material. Also through breeders they innovated new varieties and the same was
protected through CPVO.
3. How are the flower clusters in various countries connected? How do they compete?

 The flower clusters in various countries are connected through the International
Flower Auctions and through trading happening via international logistic hub
points.
 The various countries competed against other countries through the international
auctions and through exports.
 The countries also tried to improve their logistics, production and harvesting
techniques through foreign collaborations with Agricultural research institutes and
other storage management companies to stay in the competition.
 The sales achieved through auction and exports determines the leading player of
cut flower industry.

4. What are the challenges facing the Dutch cluster (in 2011)?

 The major challenge faced was rising in costs and environmental challenges.
 Also the cost of natural gas increased by 100% which was key input for
maintaining temperatures in green houses.
 Rising transportation and logistics costs was again a huge challenge as the cut
flower were perishable goods the growers unwillingly with no choice had to cope
up with this cost increase.
 Growers also had pressure to maintain the quality of cut flowers by reducing the
usage of chemical pest, fertilizers and carbon based energy. This in-turn reduced
the life of cut flowers.
 Bypassing or using only parts of the auction’s logistical and financial
infrastructure by foreign clients was also challenge faced and tracking this was
difficult because the transactions were taking place through internet.