Chinese Firework Industry

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3. In the Chinese firework industry porters five forces weigh in extremely heavy, now there may not be a perfect way to control the industry and insure you are the top contender, but there are strategic alternatives that could help Jerry Yu and his future investment. The alternatives that could help would have to give jerry a competitive advantage which would overcome one or multiple external forces. Jerry Yu runs a chain of family owned gift shops in the U.S.; he could very well utilize this clear advantage by importing fireworks from the factory to his chain of stores. This would give the factory a steady flow of decreased buyer power and possibly help solidify a steady cash flow. Due to a promising flow of sales for the factory…show more content…
With all the competitive advantages being earned by this strategic alternative, it gives Jerry’s factory a step up over many factories. This is hugely beneficial towards the risk of competitive rivals and as well raises the bar making it even more difficult for new entrants in this industry.
5a. Within the first 3 months he should have scouted out the most reputable fireworks producers in China to start doing quality and safety standards testing on. By the three month point he should have an idea of who the best manufacturers are in China, as well as working out purchasing prices, so he can begin to forecast any and all costs of adding the fireworks line to his store. This will enable him to set prices for his products. By the six month period he should have the firework operation completely up and running, with a full variety of of inventory. This will ensure that he can begin to establish a new fireworks customer base, and begin to realize a steady cash flow coming from his firework segment. He should also have the fireworks website in full swing, as well as any additional adds, such a newspaper adds, or online adds. By the 1 year period his store should be well known in the fireworks industry nation wide. He should have also begun to establish partnerships with smaller firework distributors,

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