Case Solution for Chinese Fireworks Industry – Revised

Complete Case details are given below :
Case Name :      Chinese Fireworks Industry – Revised
Authors :           Paul W. Beamish, Ruihua Jiang
Source :             Ivey Publishing
Case ID :            W11003
Discipline :        General Management
Case Length :    13 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
The Chinese fireworks industry thrived after China adopted the open door policy in the late 1970s, and grew to make up 90 per cent 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. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor’s point of view. Jerry Yu is an American-born Chinese in New York who has been invited to buy a fireworks factory in Liuyang, Hunan.
 
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