Callis Corrolla Essay

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Case Analysis Submitted by Rohan Jain(29029) INSTITUTE OF RURAL MANAGEMENT, ANAND 2009 Executive Summary In terms of competition, faced by Calyx & Corolla, the major threat was from the traditional florists present in the local areas and the FTD florist network, which was a member owned worldwide cooperative of 25000 florists. A highly efficient and cost effective delivery channel of Calyx & Corolla made it a strong competitor in the flower industry and hence achieving a gross margin of almost 80% of sales. The management of Calyx & Corolla at present was contemplating a change in their long-term business strategy as they examine their ability to compete with more traditional outlets such as retail flower shops and wire services like FTD. Also at that point of time the venture was just a start up, so the management was thinking about what changes it could bring in its positioning and overall plans to sustain competitive advantage and have higher growth rate in coming years Five Force Model {draw:frame} Threat of substitute product: Calyx and Corolla had differentiated its product on two parameters- freshness of flowers and quick delivery. No competitor in the market was able to supply flowers with this much efficiency. The target group for this product is often high income segment who prefer quality products. So until any company come up with a better offering, chances are that calyx and Corolla would enjoy higher growth. But calyx and Corolla needs continuous product differentiation according to changing taste of the customer and season otherwise it may be loss its privileged position in the market. Threat of the new entrants: Industry with higher returns would attract many new entrants which would increase the competition and reduce the profitability of existing players. In this sector margins were very high with Calyx &
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