This case shows that the industry is experiencing increased competition and regulation. Chinese fireworks industry thrived after China adopted the policy of "open doors" in the late 1970s and has grown to represent 90% of the fireworks in the world exports. However, since the mid-1990s, security concerns led governments both in China and abroad to establish more stringent rules. At the same time, there was a proliferation of small, family-run fireworks workshops, whose relentless decline in prices drove profits. "Hide
by Paul Beamish, Ruihua Jiang Source: Richard Ivey School of Business Foundation 15 pages. Publication Date: January 1, 1999. Prod. # 99M031-PDF-ENG
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