Digital platform business model for flower marketing in Brazil

Abstract

The concept of the digital platform has emerged as one of the great axes of innovation in recent years. It has been developed and implemented in various segments of the economy, both by startups and large companies. This paper presents an account about the creation and implementation of a digital platform in a cooperative in Brazil dealing with  the commercialization of flowers and ornamental plants in B2B Market. This paper is based on the Business Problem Solving methodology that encompasses the understanding of the problem/opportunity, diagnosis, solution proposal, action plan and intervention on the reality investigated. From the diagnosis of this market, it was possible to recognize the potential gains with the new business model, especially transactions with futures market contracts, transactions with lower levels of losses and transaction costs to the cooperative members, and greater convenience to buyers. The implementation of the digital platform is an unprecedented innovation in the sector and has created a growing network effect by increasing revenue, profitability, and competitive differentials generated for all participants. The study also points out opportunities to extend and apply the new model in other segments of perishable products in the medium-sized agricultural market, such as the cooperative studied.