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Chinese Fireworks Industry – Revised Case Solution & Answer

This Case is about MARKET RESEARCH

PUBLICATION DATE: January 10, 2011 PRODUCT #: W11003-PDF-ENG

The Chinese fireworks industry thrived after the open door policy was embraced by China in the late 1970s, and grew to make up 90 per cent of the fireworks export sales in the world’s. Nevertheless, beginning from the mid-1990s, security concerns led authorities both in China and abroad to set up more stringent regulations. At exactly the same time, there was rapid growth in the amount of small family-run fireworks workshops, whose constant price cutting drove down profit margins. Estimate the business attractiveness pupils are requested to undertake a business evaluation, and suggest potential approaches to enhance the business attractiveness from an individual investor’s perspective. Jerry Yu is American-born Chinese in New York who was encouraged to get a fireworks factory in Liuyang, Hunan.

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