The Chinese fireworks industry thrived after China embraced the open door policy in the late 1970s, and grew to make up 90 per cent of the fireworks export sales in the world's. Yet, starting from the mid-1990s, security concerns led governments both in China and abroad to set up more stringent regulations. At the exact same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins.
Estimate the sector attractiveness, students are asked to undertake a business analysis, and propose potential methods to improve the sector attractiveness from an individual investor's perspective. Jerry Yu is American-born Chinese in New York who was invited to buy a fireworks factory in Liuyang, Hunan.
PUBLICATION DATE: January 10, 2011 PRODUCT #: W11003-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
