Chinese Fireworks
Chinese Fireworks Industry (Case Analysis) Strategic Management MGT 498 FA2013 John Cabot University
Summary p.3
Introduction p.3
Industry Analysis p.5
-Environmental Analysis p.5
-Porter`s Five Forces model Analysis p.8
Assessment of the industry attractiveness p.10
Implementation considerations p.11
Recommendations p.13
References p.15
Summary
The Chinese fireworks industry thrived the late 1970s, and grew to make up 90 % of the world's fireworks export sales. However, starting from the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. . Jerry Yu is an American-born Chinese in New York who has been invited to invest fireworks factory in Liuyang, Hunan. The industry analysis, estimating the industry attractiveness, and proposing possible ways to improve the industry attractiveness from an individual investor's point of view, has been presented in this report. Other investment options are introduced for the investor in this report.
Introduction
Situated in the Hunan province of China, Liuyang has a greater concentration of fireworks manufacturers than anywhere else in the world. Liuyang currently produces about 65% of the world`s fireworks. In fact it has over 1,000 factories in Liuyang each specializing in a specific product, thus there are factories making only sparklers, only firecrackers, etc. To support these factories, Liuyang also has related manufacturing such as chemical
Summary p.3
Introduction p.3
Industry Analysis p.5
-Environmental Analysis p.5
-Porter`s Five Forces model Analysis p.8
Assessment of the industry attractiveness p.10
Implementation considerations p.11
Recommendations p.13
References p.15
Summary
The Chinese fireworks industry thrived the late 1970s, and grew to make up 90 % of the world's fireworks export sales. However, starting from the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. . Jerry Yu is an American-born Chinese in New York who has been invited to invest fireworks factory in Liuyang, Hunan. The industry analysis, estimating the industry attractiveness, and proposing possible ways to improve the industry attractiveness from an individual investor's point of view, has been presented in this report. Other investment options are introduced for the investor in this report.
Introduction
Situated in the Hunan province of China, Liuyang has a greater concentration of fireworks manufacturers than anywhere else in the world. Liuyang currently produces about 65% of the world`s fireworks. In fact it has over 1,000 factories in Liuyang each specializing in a specific product, thus there are factories making only sparklers, only firecrackers, etc. To support these factories, Liuyang also has related manufacturing such as chemical
References: Beamish, Paul W. Chinese Fireworks Industry – Revised. Richard Ivey School of Business. 2011 Porter E. Michael. The five competitive forces that shape strategy. Harvard Business Review. 2008 T. Hesketh and W. X. Zhu. The healthcare market. BMJ. 2007 May 21 http://www.chinadaily.com.cn/china/2007-10/24/content_6201487.htm http://www.mindtools.com/pages/article/newTMC_09.htm#sthash.gasxWHcJ.dpuf http://businesscasestudies.co.uk/business-theory/external-environment/pest-analysis.html#ixzz2fnrTq