Essay About Special Meeting Of Board Associates And Dutch Flower Industry

Competition in the Dutch Flower Markets
Competition in the Dutch Flower Markets
COMPETITION IN THE DUTCH FLOWER MARKETS
Intrigue abounded in the Dutch flower industry when buyers and growers
learned that a special meeting of Board Associates of the Dutch Flower
Auctions (DFA) had been called. What was happening? Why were the CIOs of
Aalsmeer and Naaldwijk, their two largest competing auctions huddled
together in conference?
The need for such a meeting was motivated by the successful emergence of
the Tele Flower Auction (TFA), a relatively new competitor to the
cut-flower and potted plant market. The Tele Flower Auction was enjoying
rapid growth, while DFAs two major auctions were encountering slippage.
About a year after TFA started operations, it could boast an estimated
100 growers and 160 buyers. In fact, for the first time in six years,
DFAs two largest auctions had experienced lower turnover and lower
earnings. This drop in trade motivated all the Dutch Flower Auctions, as
well as the grower organizations, to review the role of auctions,
especially the role of information technology.
Prior to the meeting, the Chief Information Office (CIO) of Aalsmeer
(VBA) and the CIO of Naaldwijk (BVH) had been asked to prepare a report
to evaluate the East African Flower Auction and its growth and inroads
into the marketplace. The report was also to include a history of
Information Technology (IT) in the Dutch Flower Auction, and a
discussion of ITs options and potential impact on DFAs future. The
Board was being pressed to find ways to stem DFAs downward trend and
secure its growth in the cut-flower market.
The following material was prepared for the meeting.
COMPETITION IN THE DUTCH FLOWER MARKETS
Intrigue abounded in the Dutch flower industry when buyers and growers
learned that a special meeting of Board Associates of the Dutch Flower
Auctions (DFA) had been called. What was happening? Why were the CIOs of
Aalsmeer and Naaldwijk, their two largest competing auctions huddled