The Dutch Flower Cluster Case

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The Dutch Flower Cluster Case is being developed by the Nyenrode Strategy Center of the Nyenrode Business Universiteit in cooperation with the Dutch Flower Auction in Aalsmeer. Please note that this is a concept version of this case. Feel free to use this case and discuss it with your students. Please note that this case has not yet been registrated. Nyenrode Strategy Center 2008 1 CONCEPT VERSION: APRIL 11, 2008 FRED VAN EENENNAAM RUTH SOESMAN The Dutch Flower Cluster The Netherlands is a small, densely populated country in northern Europe, bordered by Germany, Belgium and the North Sea. Much of the country’s surface lies below sea level and throughout history the coastal areas have witnessed many floods. However, these neighboring waters and its strategic location at the North Sea allowed the Netherlands to become a sea-faring nation and involve itself in trade. Especially in the 17th Century, the Dutch ‘Golden Age’, merchants sailed the world’s oceans, and cities like Amsterdam were among the main logistics, trade and financial centers of Europe. Even today, the Netherlands is still well-known for innovative logistics and international trade. The port of Rotterdam, one of the largest in the world, and Amsterdam Schiphol Airport are important hubs for import and export. Flowers and plants are major Dutch export products. Dutch exports of floricultural products (cut flowers, pot plants, and propagation material) are the most important category and in 2004 represented a sales turnover of 4,873 million euros, contributing more than 20% to the national trade surplusi and accounting for 55 to 60% of global sales in such products. ii In fact, since 1980, the world import market for flowers and flower-related products has grown more than 5-fold and the Dutch cluster has played a dominant role in the worldwide flower trade ever since its early beginnings. This in

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