Synthesis

1. Background of the study

Chinese community was believed as the first makers of fireworks and firecrackers. Liuyang, a city in China boosted up the popularity of it being the home of the said invention. The industry of fireworks and firecrackers aside from an attempt to populace Liuyang has been also the source of livelihood for thousands of residents. For couple of years, the success was undeniably brought up to the city of Liuyang and to the country of China. But somehow due to increasing market competitions and technological conflicts, the success declined as expected.

This has led Jerry Yu, an American-born-Chinese (ABC) businessman to assess the industry of fireworks and firecrackers as he was asked to invest with this kind of business. This raised the introduction of the Chinese fireworks industry case.

2. Statement of the problem

After taking up both the optimistic and pessimistic side of the study, Jerry Yu was facing a query whether to invest in the said industry and if he do so, what would be the best way to capitalize on the potential that remained unexploited in Liuyang’s industry of the fireworks and firecrackers.

3. Objective

The statement of the case intends to make a detailed analysis regarding the fireworks industry. It discloses pertinent information of the history up to the recent status of the industry that would aid Jerry Yu to come up with a decision.

4. Analysis

Fireworks which produce visual and edible effects through combustion or explosion had became part of Chinese celebration which populace Liuyang, a city in China, which produces the said invention. The history and tradition had made fireworks more than just a livelihood for Liuyang people. Almost every native in the area knew about fireworks making thus requiring Liuyang to claim an impressive pool of skilled labor. The success boosted up for couple of years until competitors with uneven market strategies caused the industry to decline.

Industry Structure,...