Strategic Management

Chinese Fireworks Case Study

Name: Babar Mairaj
ID: 20181-24336
If I were jerry, I would invest.
 Considering PEST analysis:
 Eased legal restrictions of foreign investments which attracts
foreign investors
 Competition is fierce in the market which attracts diversified
cultures. Increasing competition also means low initial capital
required
 Rising environmental concern will lead to increase in
demand
 Novel product varities
 Considering Five Forces:
 Competition is fierce,
 Threat from the substitutes is small,
 Bargaining power of suppliers is low,
 Threat of new entrants is small,
 Bargaining power of customers is high due to low
governmental intervention and foreign customers.
Recommendation & Conclusion
 I would invest.
 Recommendations:
 Business Strategy: Enhanced quality control to ensure
competitive advantage, product differentiation, innovation of
products
 Corporate Strategy: Foreign expansion