Manufacturing

The main strength of the firework Industry is that the raw material used In making fireworks Is easily available and the fireworks can be made at low cost. China is the main manufacture of the firework industry and majority is coming from Linsang. The demand of fireworks increased too large extent which results into high production of fireworks. Linsang made 13 different types with 3000 varieties of firework and historically firecrackers made 90% of the total production and sales.

The process technology of making fireworks Is very easy and the ingredients are the name over the decades.

The strength of the Industry Is measures from Its revenues because end of the year we can calculate the performance of the Industry from Its revenues. So, according to (Exhibit 1) in 2007 china got total revenue of ISIS and unsung got and in 2009 china got US and Linsang got ISIS 1,262,500,000. That means that they got a huge profit from the fireworks industries over the years. Weakness: – The main weakness of making fireworks is related to the safety Issues.

Fireworks were the most dangerous during the production process. A tiny spark can cause a major explosion.

Almost every year there would be one or more accidents which resulted deaths and damages. For 2009 there were estimated 5244 fireworks related injuries. There were low research and development facilities in the industries. All the resources were spent on product quality so there were no human and capital resources allocated to R&D in most firework companies. There were about 400,000 people working in the industry but very few are professionals with advanced training.

Opportunities: – In the domestic racket demand for fireworks Increased In the last three decades because of Increase In economic development and living standard. As people’s Income and living standard keep rising, fancier and pricier fireworks and firecrackers were desired over the cheap simple firecrackers, thereby creating more profit opportunities for fireworks manufacturers. In the domestic market almost every province had some fireworks making factories and they run there companies with the help of skilled workers who migrated from Laying and they mostly located In the rural area having owe cost material and cheap labor.

The wholesale dealers purchase products from manufacturers, and resell to street paddlers and convenience stores. In the export market internet play an important role because about 20- 25 percent of worldwide sales were goes through internet. Threats: – Competition among the various industries and fluctuation in price is the main threat.

Some of the industries copy other products and sell them at low price which can cause the major problem. Because some industries hire cheap labor and cut-down other cost and serious robber for the whole Industry.

Moreover, In the domestic market every year fireworks related accidents were reported and emphasized in media that’s why some cities passed some rules and regulations regarding fireworks. As a result one third of cities completely banned the use of fireworks and others allowed using fireworks only on designed places. All these result in explosion of Chinese domestic fireworks market.

One another threat occurs due to bad debt problem, because It increase the reworks manufacturers.