Flower Business: SWOT Analysis

641 Words3 Pages
Competitive Information The flower industry is diffused, with no dominant players in the industry. In the online space, 1-800-Flowers has a large website that is well-supported with advertising. However, there are seven channels that have over 5% share in the market. Most florists are small operators, though links such as FTD can provide additional revenue for small florists. Small florists often rely on regular customers who make weekly purchases for decoration or religious purposes. Large retailers represent a significant threat, including warehouse clubs, home improvement stores and supermarkets. These outlets have strong buying power and therefore can undercut florists. These sellers, however, do not compete in the online space. The major competitors in the online space are 1800flowers.com and ftd.com. Both of these sites have significant traffic, and established brand names. They are likely our biggest threat, as a new company entering the online floral space. In both instances, they have a reach that extends across the United States and often beyond. We will compete against them, and a variety of offline retailers, no matter where in the United States we are selling. Environmental Scanning With so many players in the flower business, the competitive environment is intense. The market in the US is broad, with 231 million adults over the age of 18 (US Census Bureau, 2011). Buyers purchase for a wide variety of reasons; florists rely on regular customers who

More about Flower Business: SWOT Analysis

Open Document