Analysis of technical efficiency and study cases in the Sabana de Bogotá flower crops

Abstract

The article aims to compare the results of applying a DEA model with undesirable outputs and crossover study of multiple cases flower crops companies in the Sabana de Bogotá, to establish common patterns in flower crops that are technically inefficient and those that are efficient despite the crisis experienced by growers for the revaluation of the Colombian peso against the U.S. dollar. In November 2009 measures and analyzes technical efficiency in 53 flowers crops of the Sabana de Bogotá, finding a wide dispersion in the results. Therefore, decides to do a case study to explore nine flower companies and identify different ways in which competing: strategies, distribution channels, forms of marketing and the bases of competitive advantage. It found that 38 crops are inefficient, of which 31 are medium, fact that coincides with the case study, which shows that the group hardest hit by the 2009 crisis are medium enterprises. The reasons are: high level of debt, concentration on productivity, low possibility to reduce size, and demand shrinking.These medium-sized firms have three choices: grow up and act like big enterprises, reduce size and behave as small, or out of business of flower crops. The medium-small enterprises are Pareto efficient, since they have lighter cost structure and have operating profitability good, are diversifying into new markets which lead to better margins per stem sold. Large companies are vertically integrated, competitive strategy is based on: cost management, brand development and utilization of the evolution of retail channel in USA.