chinese industry fireworks

chinese industry fireworks

  • Submitted By: ersit
  • Date Submitted: 03/16/2016 1:46 AM
  • Category: Business
  • Words: 566
  • Page: 3

THE DICE STRATEGY PRESENTS

THE CHINESE FIREWORKS
INDUSTRY CASE

BUSINESS
STRATEGY
CLABE 2016

Jerry Vu’s dilemma- to invest or not to invest

JERRY
YU
American
has, to
decide, to
invest
in the fire
He has
to– An
analyze
industry
–past
current
and
prospects
an
What
should
hethe
doborn
? Chinese

PRELEMINARIES
Origin= China

Fireworks associated historically with

..CONT

HISTORICAL TRENDS

ShiftFACTORIES
LABOR
PRODUCT
INNOVATION
CONCERNS
BIG
GOVERNMENTS
NOW
LOCAL
from
NEW
PROTECTIONISM,
SKILLS
MAKING
fireworks
SUBSTITUTESRAISED
LIMITED
IMPROVED
BROKEN
–OFFENSIVE
PROCESS
FOR
toTO
firecrackers
SAFETY
UP
LEGAL
VARIATIONS.
LASER
–FAMILY
STRATEGY
AND
RESTRICTIONSIN
BEAMS,
TECHNOLOGY
PRODUCTION
OWNED
AND
MAKE
REGULATION
SMALL
BELIEVE
DOMESTIC
NOT
AND
WORKSHOPS
CHANGED
USAGE
FIRECRACKERS
MARKET IN D

FIVE FORCES MODEL

THREAT OF NEW ENTRANTS

The Customers
low concentration
are easy
ofto
the
reach
industry allows new entrants to be safe ag

CUSTOMERS ARE EASY TO REACH
Exports: Agents that contact firms directly
Invited bidding for display fireworks
Wholesalers for consumers fireworks
Distribution Channels are relatively easy to reach:
Imports:

LOW CAPITAL REQUIREMENTS

Labor is cheap and easily accessible in

NO COST ADVANTAGES FOR ESTABLISHED
FIRMS

The absence of administrative costs and R&D makes small firms more c

VERDICT
HIGH THREAT OF NEW ENTRANTS

THE BARGAINING POWER OF
SUPPLIERS

RAW MATERIALS : gunpowder, color ingredients ,paper, fuse, an

VERDICT
Easily available raw materials resulted in LOW

BARGAINING POWER OF BUYERS
DOMESTIC
FOREIGN CUSTOMERS
CUSTOMERS

DOMESTIC CUSTOMERS

Central and Local governm

FOREIGN CUSTOMERS
Possess high bargaining power due to:

EXPORT VS DOMESTIC
MARKETS

VERDICT
HIGH FOR FOREIGN MARKET

THREAT OF POTENTIAL
SUBSTITUTES
Technology has facilitated the...

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