KaBloom!: Revolution in the flower industry

Abstract

David Hartstein started KaBloom in 1998 with the goal of creating “the Starbucks of Flowers.” He successfully built brand recognition for the gardenlike shops, but problems plagued the young organization. Nearly three years and one recession later, KaBloom failed to live up to Hartsteinʼs forecast of exponential growth. This case has been designed for a graduate-level course in entrepreneurship/innovation. Students can compare franchising with other business models, examine the impact of organizational structure and leadership styles on business effectiveness, relate issues of supply chain management and logistics to environmental changes, and recognize the impact of innovation on business sustainability.