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The Chinese Fireworks Industry essay
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The Chinese Fireworks Industry. Custom The Chinese Fireworks Industry Essay Writing Service || The Chinese Fireworks Industry Essay samples, help

The renowned Chinese fireworks industry tremendously thrived after China decided to adopt the famous open door policy. This was a case of the late 1970s, which eventually grew to constitute up to more than 90 per cent of all the global fireworks export sales. However, in the mid-1990s, amid safety concerns, the China government and many others abroad decided to set up extremely strict regulations that affected its market. Another factor that also affected it was the sudden growth of small fireworks workshops that were run by families, who took advantage of cutting down of prices in order to claim the market. Jerry Yu, who resides in New York, is advised to invest in the fireworks industry in China. He is perturbed by the fact that he has to resolve whether investing in the industry is worthwhile, bearing in mind the recent threats and weaknesses that have befallen it. This case may elicit several issues that may act to his advantage or also pose a formidable challenge to his success as analyzed in this essay.

The ways of entering the Chinese Fireworks industry market include;

  • Research and Development 
  • Overseas Office
  • Marketing
  • Being Creative 

Research and Development is very essential in this industry of fireworks. If Yu takes advantage of the failure by many companies to invest in this sector, it may give him an edge over others. Technology is also significant in ensuring that the company is in line with the prevailing market trends and even go further to surpass the expectations of that market.

Overseas Office: establishment of an overseas office is necessary as Yu will be able to control and also manage his productions. This will allow him to oversee most of the operations of the company.

Marketing:  Yu has to come to terms with the fact that he is not the only investor in the sector. He has to compete and marketing will be key to his success. 

Be Creative: internet can be extremely beneficial to Yu as he can embrace online exportation, direct visits with his clients and using the niches and gaps that exist in the market to the company’s advantage.


Investment in the China Fireworks Industry may have a lot of profit considering that it is one of the leading global exporters of Fireworks, accounting for more than 90 percent. The vast Chinese population, the qualified and highly skilled workers, and effective marketing base will be a boost for Yu to invest in the industry. This means there will be enough market for his products.   There is less risk in the market as the field is an established one and does not elicit any worries.


Proximity of the target industry and Yu’s residence are a massive blow to close monitoring. New York and China are miles away, and he will surely face a problem with management and control. With constant government monitoring, he may face law suits and complaints from customers and employees. The price charged by most of the family run shops do not incorporate the quality that products may have. This means that exportation will be expensive, and Yu may eventually fall out of the market. The existing liability for the Fireworks Industry is high hence cases of insurance must be well accounted for.


The global framework of restrictions, and more locally in China, may hinder successful investment in the industry. These are mainly on the legal and safety side.  Innovation has also dealt a blow to this industry as new products which act as substitutes pose a challenge. They include the “make-belief firecrackers” which can be acquired at cheap and fair prices. This may affect Yu’s idea of investing in China. Europe has always been known as the main manufacturer of quality products. Competing with them will call for dedication and massive capital investments. Branding will also be a thing to consider. Increased demand for the products elicits a consequent increase in competition hence fewer profits.



Embracing technology and its advancement is the key to the sought success of this very company. Few costs will be incurred in employing people and also supervision. As Canadian market expands, in line with fireworks, Yu may seize the opportunity to export there. He may also decide to venture into other global markets. The application of merging with other foreign investors is possible, especially due to the constant growth of this market.

I believe investing in this China Fireworks Industry is worthwhile. He will have less risk as the grounds are already tested. The market expansion will also be a boost and embracing technology will give him an edge over others.

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