Fireworks Industry Case Study

3161 Words 13 Pages
Register to read the introduction… Globally emerging markets and developed markets are the primary importers of fireworks and the demand has been steadily increasing. Increased use of fireworks across nations traditionally has been during their major holidays such as Chinese New Year, July 4th in US, etc. There is also evidence of additional consumption in developed and emerging markets.
Demographic Trends

China's population growth rate is 0.47%
World`s population growth rate is 1.14%

Socio-cultural Influences

Environmentally conscious society
Fireworks are a huge tradition in China

Macroeconomic Impacts

Due to heavy competition, the market is faced with reduced prices
Industry with increased demand
Workers are lost to a different industry
The industry faces with constant increase in cost of labor and raw materials.
Demand of domestic market is declining
Export sales are rising

Political-legal Pressure

Highly regulated industry:
-manufacturing
-distribution
-consumption
No protection for:
-intellectual property rights
-copying of brand
-identity
-duplicates

Technological Developments

Low R&D
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The customers in fireworks and firecrackers market can be divided into individuals and business units such as government institutions, private associations or general companies. Every country has different regulations about manufacturing, selling and using fireworks and firecrackers. Because more and more countries prohibit the public launching fireworks and firecrackers, the individuals market declined dramatically. In the contrast, the business units market went up because in the display fireworks market, the buyers were often central and local governments who purchase product for public shows on national holidays or special celebrations. The foreign buyers have a high power due to the high demand in international market. Besides, foreign buyers are very well-informed and dealing usually directly with the factories, which results in high power as …show more content…
There are opportunities in this sunset industry if the company can build a totally new infrastructure.
In terms of infrastructure and product development the investor should focus on the product diverseness and SOP (Standard Operating Procedures) management to have more competitiveness to their rivals. First of all the investor should concentrate on R&D to produce the fireworks that can shoot long distance and safely. R&D department also has to develop more environment-friendly fireworks by changing materials. Every New Year, most of the big cities in the world will schedule the large-scale fireworks displays. Those displays all are high altitude fireworks. However, more and more cities regulate the consumption and launch of the fireworks and firecrackers because of increased concerns about environmental pollution and safety. Launching fireworks becomes a business program to attract domestic and international

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