Flowers retail trade market: an application of Porter’s Strategic Taxonomy

Abstract

The flowers retail trade has shown good potential for development in agribusiness, despite the growth. Thus, in order to support a better understanding of the current scenario, it is presented the result of a research that sought to promote a classification by Porter’s Strategic Taxonomy, revealing what were the main lasting competitive advantages in the segment. In this context, a descriptive exploratory research was carried out between July and October 2019, where 23 flowers retailers in Paraná Coast, South of Brazil agreed to participate in the survey. The result of the classification of Porter’s taxonomy revealed that most retailers use the differentiation strategy (n = 52%), followed by the focus strategy (n = 48%), with no retailers that adopt the strategy of leadership in cost. The main threats from competitive forces were the bargaining power of the suppliers and the threat of substitute products. The main commercial tactics, which in the interviewees’ perception resulted in lasting competitive advantage, were the quality of the flowers sold, the experience in the flower segment that generated differentiated service, the offer of products different from the traditional ones and lower prices. The strategic typologies of Porter’s taxonomy adopted by retailers in Paraná Coast, in the current scenario, seem to be able to minimize the effects of competitive forces and they are able of generating sustainable competitive advantages.

The competitive and comparative advantages of aglaonema farming in Depok City, Indonesia

“…Since there is an opportunity for global trade, farmers are suggested to expand their sales worldwide to achieve a higher price. These basic findings are consistent with other studies stating that ornamental floriculture as a luxury item (Gabellini and Scaramuzzi, 2022) with elastic demand (Olewnicki et al, 2019), allows customers to pay exceptional prices for its invincibility and uniqueness (Anacleto et al, 2020;Gabellini and Scaramuzzi, 2022).…”

“…Locally treated plants have more resistance and adaptation than imported plants. Consumers also favor aglaonema which is robust, unusual, and distinctive, despite its high price (Anacleto et al, 2020;Gabellini and Scaramuzzi, 2022;Khofifah et al, 2022;Paiva et al, 2020).…”

“…A study encourages that even if farming receives limited protection from the government, it does not inevitably result in a loss of competitiveness in that country. The competitive advantage of the commodity will protect farmers and preserve competitiveness (Anacleto et al, 2020).…”

“…Equal to PCR, it is suggested that using domestic resources for aglaonema farming gains its efficiency. To achieve more customer satisfaction, farmers are expected to be able to breed hybrid varieties of plants (Van Huylenbroeck and Bhattarai, 2022) and perform a differentiation strategy (Anacleto et al, 2020). In addition, increasing the skills of farmers in its community will be necessary for farming development (Nedanov and Žutinić, 2015;Orozco et al, 2021).…”

“…PAM summarises the answers to three issues that other assessment techniques cannot yet quantify: agricultural profit, competitiveness, and the effect of government policy (Monke and Pearson, 1989). Although particular studies have examined PAM (Simamora and Nadapdap, 2021) and the competitiveness of ornamental plants (Anacleto et al, 2020;Nedanov and Žutinić, 2015) there is no study conserving on PAM analysis for aglaonema, either in Indonesia or other regions. In this work, the analysis of aglaonema farming is given 1) to examine the profitability and competitiveness of aglaonema farming in Depok City and 2) to simulate fluctuations in aglaonema's competitiveness using sensitivity analysis of production unit and exchange rate.…”