Bloemenveiling Aalsmeer Harvard Case Solution & Analysis

Dutch "Verenigde Bloemenveiling Aalsmeer Cooperative" (VBA) was one of the largest markets in the world flower. About 6,300 growers, half of them in the Netherlands used the auction of cut flowers and plants, more than 1,000 wholesalers. In 2004, the value of flowers and plants traded at Aalsmeer exceeded 1.6 billion euros, accounting for 36% of world trade in cut flowers. Every morning, VBA held 55,000 Dutch auctions in accordance with customers and suppliers. While the formidable dimensions, VBA management worried about the future of the exchange, because direct sales between producers and buyers began bypassing auctions. Kenyan farmers, for example, often shipped roses directly to wholesalers. VBA management considered a number of strategic initiatives and tactical moves in response to an increase in direct sales. If the exchange will allow non-Dutch producers to become members? Will it make sense to have a larger share of the wholesalers trade value? Philip Smits, CEO of VBA, knew that the expansion of membership and correct VBA Trade Commission were guaranteed to be hotly contested topics at the upcoming general meeting. "Hide
by Felix Oberholzer-Gee, Vincent Dessain, Daniela Beyersdorfer, Anders Sjoman Source: Harvard Business School 18 pages. Publication Date: December 14, 2005. Prod. #: 706441-PDF-ENG

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