Calyx and Corolla:HBR case excerpts

INTRODUCTION
This case, about Calyx and Corolla, a mail order flower retail company, is analyzed and presented in various sections encompassing the organization and its management, the relationships with the key players – how it led to its success, its growth in terms of volumes and profits. A comparative study has been given evaluating the efficiencies of the traditional supply chain and the innovative route that has been followed by Calyx and Corolla. Combining the use of overnight air freight (Federal Express), information technology, an 800 number, and a catalog, Calyx & Corolla was changing the way flowers had traditionally been distributed, bypassing three layers of distribution, and providing very fresh flowers directly from the growers to consumers.
PROBLEM DEFINITION
How this start-up venture should grow further is one of the major concerns as the market has been taken up by traditional florists. Though the company started with the differentiation strategy but the thing that will help it to sustain itself in the competitive market is innovation. Proper positioning in the market is also required. Some of the minor issues are that the company is unable to deliver its service on holidays as it is dependent on Fed-Ex which did not provide service on holidays. Also the company is unable to deliver flowers at certain places such as Mexico, Canada. The seasonal and unpredictable demand of the customers was not being able to be catered to as flowers are perishable products and must be delivered within few days to a week of its picking.
ANALYSIS
By eliminating the wholesalers and distributors that provide most retail florists with their inventory, Mrs. Owades has cut a week to 10 days out of the distribution channel for fresh flowers and plants. Exhibit 2 depicts that the company has a good reputation with its existing customers. Also the use of internet technology was a new concept then, and new vistas can be explored by the company as far as the technological aspects are concerned.
RECOMMENDED ACTION
• The company should formulate strategies that retain its current customers and attract new customers also.
• The company can think of expanding by opening up retail outlets at chosen places such as shopping malls or prominent market places. The company should keep its inventory very meticulously.