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Forest of Flower
Forest of FlowerIntroductionWayne Watson founded Forest of Flowers Inc. in 1996 with three retail outlets throughout London, Ontario.Having experienced great success with the first three stores, two additional locations were opened in 1998.By early 2003, Forest of Flowers had become a market leader in the London area, Watson felt that it was appropriate for a second expansion of two more locations to improve current distribution processes. Sale projections, profitability and costs are important in determining whether this investment will cover the long term loan required for the expansion.EnvironmentGlobalColombia is the leading flower producer and exporter in South America accounting for 59% of imports to the United States.Seasonal flowers that are typically unavailable in Europe and North America are grown in countries with better climate conditions mostly in the southern hemisphere.Canada North AmericaCanada accounts for 4% of flower imports to the United States.IndustryThe floral industry is highly seasonal and is heavily dependent on holidays with highest sales on Valentines Day, Christmas, Easter and Mothers Day.The three main sources of flower suppliers to retail florists are local floral growers, wholesalers and local auctions.CompetitionAlthough having experienced great success with the first three stores, Forest of Flowers faces strong competition in the floral market in London that still has enormous room for growth of market share. Forest of Flowers is reported to be the market leader in the London area with a market share of 13%.Three competitors in the London area are:Yonge FlouristGammage FlowersFlowers LondonThese 3 companies were chosen based on their comparable size to Forest of Flowers based on their sales and growth.Yonge Florist – Operates a large network of flower retailers in 6 provinces.Gammage Flowers – Started in 1869, floral distribution to retirement homes, hospitals, and schools, specializes in tropical flowers. Flowers London – Started
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