Uncovering new business concepts within greenhouse industry in the Middle East

Abstract

The effect of the financial crisis is definitely being felt in the greenhouse sector of the Netherlands. There has been a significant decrease in the trade of flowers, plants. The import of flowers and plants to the Dutch flower auctions, in January 2009 has dropped by 14% compared to January 2008. Import of plants dropped by 6% for this period, where the import of flowers has dropped by 18% for this period [de Bont(2009)]. The export of cut flowers has dropped by 10% for this period (Jan 2008 - Jan 2009) and the export of pot plants has dropped by 3% [de Bont(2009)]. In addition the Dutch greenhouse industry, profitable production and assemblage of the logistics systems have become increasingly difficult and competitive. Moreover the greenhouse market has been changing. The bargaining power of customers and suppliers has increased, since they are getting integrated; the horticultural production units have been shifted from developed countries to the rest of the world; the value chain of the market has been transforming continually and also market trend alters all the time. From another point of view the flower export to the new market (Poland and Russia) has been increased from 2007 to 2008, while the traditional clients of Netherlands (Germany and Great Britain) imported fewer flowers in the same time period. Therefore one of the best possible options for Dutch companies such as CODEMA is to target international markets. Aims In general and through implementation of this project, CODEMA will achieve: 1. New Global Business Strategy 2. Market extension 3. Designing Innovative Product concepts And specifically the goal of CODEMA in Iran, the first target market in the Middle East is as follow: CODEMA, the Dutch holding company, is specializes in manufacturing greenhouse logistics systems, flower sorting machines, ERP systems, and manufacturing aluminium structures. To extend its market internationally, the company will provide equipments and services in the Middle East. CODEMA as the market leader in Iran will penetrate in the market with innovative, first to market, high quality products and services. The company will establish its flower distribution channel, will produce presentation tables and COOLBOX , and export its sorting machine to the region. The company also plans to cooperate with Dutch companies to provide packaging machines for the flower growers. Finally with the execution of robust strategy with an international brand name, we expect to reach the financial forecasts, cited in this chapter.