Calyx And Corrolla

This is a group assignment and it is due at the start of the Week 7 class. After reading the case, please answer the following questions.

Your submission should be not more than 4 pages, in 12 pt. font and double spaced. You may also include up to two pages of appendix or exhibits if necessary. You may use the following discussion questions as possible guides for the case analysis.

1. What is the gap in market structure (where is the business opportunity coming from given the distribution channel) for Calyx & Corolla's business model?

a. The gap lies in the current distribution model for flowers involving too many players, which in turn involves too much time. This decreases the lifespan for the flowers once the customers has made the purchase

b. By providing a system which allows the customer to receive the product directly from the grower, the consumer receives a product that has been cut form the plant much more recently and thus their flowers are fresher and more likely to last longer, thus improving customer satisfaction with the product.

c. In addition, but cutting out pieces of the distribution chain, C & C offers the grower a greater opportunity for growing their business and C & C makes a better margin off of their business

d. As a consortium, FTD has limited ability to establish business relationships. C & C has an opportunity to work with partners directly to provide added value to the business model through more efficient shipping mechanisms (e.g. Sunday delivery), or stronger relationships with growers, thus potentially greater reliability of delivery of rare flowers, flowers during low supply, etc. In addition, there are better opportunities for co-branding due to the ability to work directly with potential marketing suppliers.

2. Evaluate the strengths and weaknesses of C&C versus a conventional retailer?

a. Strengths

i. Better Margins

ii. Fresher Flowers

iii. Added revenue opportunities for growers, which incent them to work with C & C

iv. Can pay growers much sooner than distributors

v. Better ability to target active buyers

vi. Opportunity to build brand awareness

vii. Improved inventory controls and supply chain management capabilities

viii. Better opportunities for promotions

ix. C & C has FedEx as a trusted partner and has proven reliability

x. Ability to have growers personalize cards by hand writing them

b. Weaknesses

i. Lack of Customer Awareness Ð'- no current brand awareness (no current advertising strategy)

ii. Growers resistant to new way of doing business and having to take on new responsibilities that are not part of their core specialties

iii. Reliance on FedEx or other shipper to make timely deliveries and effectively deliver based upon C & C's needs.

iv. No direct influence on the end product

v. Can't do local events such as weddings and funerals because they don't have an onsite presence

3. What is the value (quantitative number and the components of the value) of a C&C customer using