Chinese Fireworks Industry – Revised Harvard Case Solution & Analysis

Chinese fireworks industry thrived after China adopted the open-door policy in the late 1970s, and grew up to make 90 percent of the world's fireworks export sales. However, since the mid-1990s, security concerns led governments both in China and abroad to establish more stringent rules. At the same time, there was a proliferation of small, family-run fireworks workshops, whose relentless decline in prices drove profits. Students are invited to industry analysis, valuation attractiveness of the industry and to suggest possible ways to improve the attractiveness of the industry from the point of view of the individual investor. Jerry Yu is an American of Chinese descent in New York, who was invited to buy fireworks factory in Liuyang, Hunan. "Hide
by Paul Beamish, Ruihua Jiang Source: Richard Ivey School of Business Foundation 13 pages. Publication Date: January 10, 2011. Prod. #: W11003-PDF-ENG

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