'The Chinese Firework Industry\r'

'Introduction: Liuyang is a city k straightwayn as â€Å"the home of fireworks and firecrackers” in Hunan land of China. Fireworks and Firecrackers eat up become the pillar labor of Liuyang, where 50 percent of total jobs argon tie in to fireworks and whiz ordinal of the total workforce lives in fireworks. Out of total 6458 fireworks manufacturers, 2702 argon in Liuyang and 2144 in the surroundings of Liuyang. 89 % of total chines production of fireworks and firecrackers comes from Liuyang.China produces 60% of the whole global production. Fireworks and firecrackers are part of Chinese traditions and culture. Chinese display firecrackers and fireworks to proceed new-year, see strike the year, weddings, death. They in addition use fireworks to scare the evil forces. pyrotechnics is the formal name for fireworks. Trend has shifted from firecrackers to fireworks. In 2009, nevertheless 20 % of the total sales were generated from firecrackers. Fireworks link up skills h ave improved as well. First fireworks could hardly go 20 meters into the sky, but presently it sens go even so 400 meters into the sky. Firework intentness is low-tech and extremely labor intensive.Only few processes could have been automatise and many another(prenominal) unwrap processes are fluid done with hand. elaborate bulge out safety is high concern because a tinny spark caused by the drag of head or dropping of a tool can result into an explosion. Employees are geological fault to safer jobs. Skilled employees are insufficient in chips. Number of engineers is also limited. attention has to face environmental concerns too. By 2009, 75% of the fireworks imports to Canada were from China. Fireworks effort was banned in one third of Chinese cities but by 2009, all cities removed restrictions. By 2009, fireworks exports reached $675 million. In 2009, Liuyang Fireworks Company was listed on Toronto Stock Exchange. Fireworks industry is facing immense competition.L iling in Hunan body politic is a community fireworks manufacturer, which is causing price competition. Pingxiang and Wanzai in Jiangxi province are competing with Liuyang in price and quality. Dogguan in Guangdong province, cod advantage of its closeness to Hong Kong and sophisticated management and marketing skills. Dogguan has snatched share from Liuyang. DEEP LIST AnalysisDemographics: Out of 400,000 employees, exclusively small portion is skilled workers. Number of engineers is also small. Skilled worker earns RMB 1200 to RMB 1800 every month. Un-skilled worker earns RMB euchre to RMB 700 every month. EconomicBy 2009, fireworks exports had reached $ 675. delinquent to economic development, income and standard of living of wad is rising. Eventually, people desire for pricier and fancier fireworks everywhere brazen and simple fireworks. This is creating profit opportunities for aires. bionomicalFireworks are hazardous to environment. Due to environmental concerns, once f ireworks were banned in one third of the Chinese cities. But these concerns are still in place. Mass media also high lights defilement related concerns. Political and legalRestrictions on foreign lineal coronation have been eased. organisation’s endeavor of encouraging private business ventures is a nemesis to existing companies. Industry once nationalized but latter(prenominal) was privatized. Fireworks industry remained banned in one third of Chinese cities from 1998 to 2009. rescue was reformed toward market economy. Government agency of Fireworks Industry Department adopted despicable strategy which comprised of 3 steps: 1. Opened local offices in cities of 29 provinces2. Regulated prices that Liuyang could quote and carry on in export sales 3. Government to judicature relationship in order to secure contracts for king-size public firework displays in each province Till 1998, Chinese fireworks were banned in Canada.Informational Fireworks related accidents are r eported and emphasized on loudness media before and after and conventional spring festival. close to articles condemn firecrackers and fireworks. Social Chinese use fireworks to celebrate new-year, see off year, wedding and deaths. Fireworks and firecrackers are also used to scare evil forces. But tailor is changing direct. Many people instanter analogous to get married in westward style, in church or a scenic adopt in outdoor meadows. They prefer quiet and felicitous way of getting married over the traditional rip-roaring way. Red balloons have been identified as a substitute to firecrackers and fireworks in some marriages in Beijing. People now prefer laser beams over fireworks on great openings. TechnologyFireworks industry is low-tech and extremely labor intensive industry. Although, some processes have been automated but still, many key processes are performed with hand. fall upon trends shaping up in the environmentBelow mentioned are the key trends shaping up in the environment. Competition The number of players is increasing due to the low initial investiture and presidency initiative to encourage private business ventures. Increasing competition is causing reduction in prices eventually reduced profits. Social ChangesPeople are shifting from the traditional ways of Chinese culture. People now like to get married in western way, in church or scenic place in green meadows. They also prefer now calm and peaceful environment to the traditional noisy ways. On great openings, instead of using fireworks now laser beams are being used. â€Å"Make recall firecrackers” are the electric tube lights that are now substituting the fireworks. Economic Changes:Foreign direct investment is increasing now. Export $ volume is increasing too. Economy has been reformed towards market economy. Environmental and safety concerns: Employees are now concerned about their safety at workplace. They are shifting to safer jobs. Safety regulations by regime are also getting strict now. Ecological concerns of fireworks are also increasing. Fireworks are condemned because of the pollution and accidents caused by them. Political and Legal Changes:Political and legal simulation has changed as well. In past, industry was owned by government but now it has been privatized. Even government is encouraging new entrants.\r\n'