Management strategies for greenhouse growers in a competitive environment.

G. Trip, J.A. Renkema, R.B.M. Huirne

    Research output: Contribution to journalArticleAcademic

    1 Citation (Scopus)

    Abstract

    A study among 26 Dutch chrysanthemum firms was performed between November 1993 and November 1994 to (a) assess the relative economic performance of each firm and (b) compare three strategies used by growers in getting high economic results. These strategies, related to the theory of Porter (1985), are (1) a cost advantage strategy, (2) a quality strategy, and (3) a market strategy. Although cost information was incomplete, a firm-specific measure could be defined and calculated for the economic performance of each firm. This economic performance was defined as the quotient of actual and normative gross returns. Normative gross returns are estimated by means of loglinear regression with firm structural variables as independents. Positive deviations from the normative level mean that these growers have followed a successful strategy towards quantity, quality, and/or market. Variations between gross returns per m2 are very large. The total range is from 26 percent below average to 39 percent above average. Part of this variation can be attributed to differences in the firm's technology. However, the resulting range in economic performance remains considerable: minus 16 percent to plus 17 percent. Being better than average in one area only (quantity, quality or market) usually is not enough for having a better-than-average overall economic performance. Dividing one's attention to all three, or at least two areas, usually gives better results.
    Original languageEnglish
    Pages (from-to)35-42
    JournalActa Horticulturae
    Volume429
    DOIs
    Publication statusPublished - 1996

    Keywords

    • cut flowers
    • management
    • marketing
    • netherlands
    • production
    • chrysanthemum
    • production processes
    • greenhouse horticulture

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