SWOT- CASE STUDY
SWOT
Strengths:- The main strength of the firework industry is that the raw material used in making fireworks is easily available and the fireworks can be made at low cost. China is the main manufacture of the firework industry and majority is coming from Liuyang. The demand of fireworks increased to a large extent which results into high production of fireworks. Liuyang made 13 different types with 3000 varieties of firework and historically firecrackers made 90% of the total production and sales. The process technology of making fireworks is very easy and the ingredients are the same over the decades.
The strength of the industry is measures from its revenues because end of the year we can calculate the performance of the industry from its revenues. So, according to (Exhibit 1) in 2007 china got total revenue of US$ 1,237,235,000 and Liuyang got 750,000,000 and in 2009 china got US$ 1,682,928,000 and Liuyang got US$ 1,262,500,000. That means that they got a huge profit from the fireworks industries over the years.
Weakness: - The main weakness of making fireworks is related to the safety issues. Fireworks were the most dangerous during the production process. A tiny spark can cause a major explosion. Almost every year there would be one or more accidents which resulted deaths and damages. For 2009 there were estimated 5244 fireworks related injuries. There were low research and development facilities in the industries. All the resources were spent on product quality so there were no human and capital resources allocated to R&D in most firework companies. There were about 400,000 people working in the industry but very few are professionals with advanced training.
Opportunities: - In the domestic market demand for fireworks increased in the last three decades because of increase in economic development and living standard. As people’s income and living standard keep rising, fancier and pricier fireworks and firecrackers were desired over the cheap
Strengths:- The main strength of the firework industry is that the raw material used in making fireworks is easily available and the fireworks can be made at low cost. China is the main manufacture of the firework industry and majority is coming from Liuyang. The demand of fireworks increased to a large extent which results into high production of fireworks. Liuyang made 13 different types with 3000 varieties of firework and historically firecrackers made 90% of the total production and sales. The process technology of making fireworks is very easy and the ingredients are the same over the decades.
The strength of the industry is measures from its revenues because end of the year we can calculate the performance of the industry from its revenues. So, according to (Exhibit 1) in 2007 china got total revenue of US$ 1,237,235,000 and Liuyang got 750,000,000 and in 2009 china got US$ 1,682,928,000 and Liuyang got US$ 1,262,500,000. That means that they got a huge profit from the fireworks industries over the years.
Weakness: - The main weakness of making fireworks is related to the safety issues. Fireworks were the most dangerous during the production process. A tiny spark can cause a major explosion. Almost every year there would be one or more accidents which resulted deaths and damages. For 2009 there were estimated 5244 fireworks related injuries. There were low research and development facilities in the industries. All the resources were spent on product quality so there were no human and capital resources allocated to R&D in most firework companies. There were about 400,000 people working in the industry but very few are professionals with advanced training.
Opportunities: - In the domestic market demand for fireworks increased in the last three decades because of increase in economic development and living standard. As people’s income and living standard keep rising, fancier and pricier fireworks and firecrackers were desired over the cheap