Calyx & Corolla: Case Analysis
Calyx & Corolla is a newly founded venture in the fresh flowers selling business. With two and a half years’ experiences and practices, it has consummated over 150,000 transactions, yielding revenues in excess of $10 million and successfully pioneered the concept of selling fresh flowers by mail. However, the managers of the company, Fran Wilson and Ann Lee, are reassessing the firm’s long-term growth strategy. Although the business achieved a huge success in such a short time, it is hard for the business to grow and generate more revenues when facing with growing challenges. Hence, the management is thinking of a more aggressive growth strategy to stimulate the business and increase the sales. In order to conclude a better strategy, an analysis of the industry would be necessary to help understand the company’s current situation.

In 1990, retail flower and plant sales were almost a $9 billion business in the United States. Most of these flowers are planted domestically while several types of flowers, including carnations, roses and a variety of other flowers, are imported from other parts of the world. Although there are some large sellers in the industry, major sellers are still small, family-operated companies. Usually, growers sell their flowers to distributors. And then distributors sent flowers to different wholesalers and wholesalers then sent flowers to florists. This whole process will add a 500% to 700% markup to the final selling price. Hence, a flower that costs $5 for the grower might ultimately cost $40 for the consumer. Customers purchase flowers for different reasons. Obviously, they are an essential part of weddings and funerals and popular gifts for birthdays, anniversaries, convalescence, Valentine’s Day and Mother’s Day. However, flowers have their perishability. This is one important reason that