Case study aalsmeer flower auction business essay

Aalsmeer Flower Auction is the largest flower auction and the largest commercial edifice in the world (Guinness World Records, 2001) located in Netherlands offers global growers, wholesalers and exporters to trade flowers and plants. It is a growers cooperative with over 3,500 member companies.

The emergence of alternative, electronically driven flower markets. The auction met the needs of growers, but not those of retailers. To satisfy changing consumer tastes the retailers asked for fresher products, more varieties, smaller quantities and multiple deliveries each week. They felt demand should have more influence on supply.

At the same time growers became more professional, which led to a more formal way of doing business and interest in new, perhaps electronic, ways of selling. The board of the Aalsmeer Flower Auction felt that they had to react to these changes to support its business processes and to connect with suppliers and buyers.

Within the floricultural value chain, growers are the initial suppliers. Demand comes from exporters, importers, wholesalers, cash and carry stores, and retailers. Within this chain, auctions play a mediation role – they bring together suppliers and buyers and so determine prices.