The Chinese Fireworks IndustryBackgroundThe Chinese fireworks industry has been undergoing some significant growth since China, in an effort to transform into a market economy, initiated opening up and reform policy in 1979. It is worlds largest fireworks exporter accounting for 89% of worldwide fireworks export sales. However the competition in the Chinese fireworks industry is fierce with “cutthroat price competition” and “hard-to-penetrate distribution channels” with the entrance of small companies; competition intensified, driving the price, and ultimately the profitability of each company, to the minimum.
Jerry Yu is an American-born Chinese with an MBA degree, living in New York and running a small family-owned chain of gift stores in Brooklyn. His Chinese relatives are urging him to invest in the Liuyang fireworks industry through buying a factory there. Liuyang is considered the top fireworks exporter worldwide, making up 60% of global production. The following analysis is to justify Jerry Yus decision to invest in Liuyangs fireworks industry.
Decision JustificationAs an American-born-Chinese, Jerry Yu could be regarded as an ideal candidate to invest in the Liuyang fireworks factory given that he knows the Mandarin and American cultures. He also possesses some other critical assets to facilitate in this new venture and break into the new market: his business experience in running a chain of gift stores in Brooklyn, New York; his MBA education; his knowledge of both oriental and western business thinking. Through the help from his hometown relatives, Mr. Yu also has access the specific knowledge, technique and networking needed to break into in the Liuyang fireworks industry. From an investors perspective, Liuyang, a city boasts 60% of the global production as well as a historic tradition of fireworks manufacturing and investment, is a perfect place to start such business.
The Future
Mr. Yu has a lot to prove to the public and beyond. According to Forbes, “Mr. Yu is also a top-paid CEO and in 2015 he was named one of the “America’s Billionaires” by Forbes.” This might not be a coincidence however. He may as well just go to work with a business that has been in action for over 100 years. Having invested in many Chinese companies, which can often be described as ‘firm,’ Mr. Yu knows how to handle the pressure of being ‘close’ and getting things done without a ton of investment in risk.
The next step for Mr. Yu is to continue to prove his skills in the international marketplace. Not only does he own a very large majority of Liuyang’s fireworks, but he has a large number of people working with him on the China+ India and Indian fireworks sales. If successful, it could make a very big difference in the entire markets involved, especially in China.
Disclaimer:
The author does not own all rights to the information found here. There are many things not covered in this article but this is considered complete and accurate.
Disclaimer:
The information included in this article does not necessarily represent the official views nor conclusions of the Liuyang fireworks business or the Liuyang fireworks company. The content and opinion expressed herein is, and should not be used to endorse, endorse, or offer any position for the Liuyang or any subsidiaries at time of writing, nor may I be held liable or liable for any direct, indirect, special, consequential, or exemplary damages associated with any of the information expressed herein. The opinions and opinions expressed herein are not the official views of Liuyang fireworks business and we do not own or control anyone’s private thoughts or opinions on the subject. All rights reserved.
LINK: http://www.yuanlou.com/
(i) Laying the Building
Located on the upper floor of L2 Tower, a single-story (two stories) multi-level building consists of two separate sets of three-story (four stories) columns with a roof on either side. It is possible to walk into the building through the hallway of the hallway, enter through a back door of the building, and walk through the main entry to the rear entrance.
At 8:35 a.m., the building has three floors and a four-floor terrace. The first floor has a window and a lighted view that is provided by a 3-storey, six-storey and five-storey outdoor terrace. The lower level of the building is one story with a roof on the lower level and the building’s entrance to the building at 1:30 p.m. is a 4-story-high window, in combination with a three-story, four-wide terrace. The second floor has a doorway through a four-story window and the building’s entrance to the building at 1:35 p.m. to the rear. The roof on the lower level is 5stories, the two-story roof has a front porch and the front porch has a rear entrance with a balcony.
Locations: There is one structure shown in the photograph below, but only one structure can be shown on a square-story tower, with its side facing east toward the east. The structure can be purchased from any retailer or from one individual for under $1.50. See Note 4.
Lets look at the building on the left. It has three floors and a terrace with a roof and a view of the skyline. In the front of the structure a five-story open-air courtyard with an arched open front facade is surrounded by two three-story (two stories) terraces, each with a separate row of roof and a rear entry leading to the lobby.
The exterior of the building is well designed, with two large, tall (15’6″) concrete, six-inch hard-wood bollards and granite countertops. Its side-lily of timber was removed and placed directly on the ground floor beneath the foundation. The side-lily supports are 2,000 feet square with over 7,500 square feet of floor space.
The concrete roof supports on the exterior are 1,500 foot square spaced at 7,600 feet vertical and 2,000 foot square spacing at 7,500 feet horizontal, respectively.
The two three-story (two story) arched roof (which also is a three-story) terraces are positioned parallel to the ground floor of the building. Also on
The Future
Mr. Yu has a lot to prove to the public and beyond. According to Forbes, “Mr. Yu is also a top-paid CEO and in 2015 he was named one of the “America’s Billionaires” by Forbes.” This might not be a coincidence however. He may as well just go to work with a business that has been in action for over 100 years. Having invested in many Chinese companies, which can often be described as ‘firm,’ Mr. Yu knows how to handle the pressure of being ‘close’ and getting things done without a ton of investment in risk.
The next step for Mr. Yu is to continue to prove his skills in the international marketplace. Not only does he own a very large majority of Liuyang’s fireworks, but he has a large number of people working with him on the China+ India and Indian fireworks sales. If successful, it could make a very big difference in the entire markets involved, especially in China.
Disclaimer:
The author does not own all rights to the information found here. There are many things not covered in this article but this is considered complete and accurate.
Disclaimer:
The information included in this article does not necessarily represent the official views nor conclusions of the Liuyang fireworks business or the Liuyang fireworks company. The content and opinion expressed herein is, and should not be used to endorse, endorse, or offer any position for the Liuyang or any subsidiaries at time of writing, nor may I be held liable or liable for any direct, indirect, special, consequential, or exemplary damages associated with any of the information expressed herein. The opinions and opinions expressed herein are not the official views of Liuyang fireworks business and we do not own or control anyone’s private thoughts or opinions on the subject. All rights reserved.
LINK: http://www.yuanlou.com/
(i) Laying the Building
Located on the upper floor of L2 Tower, a single-story (two stories) multi-level building consists of two separate sets of three-story (four stories) columns with a roof on either side. It is possible to walk into the building through the hallway of the hallway, enter through a back door of the building, and walk through the main entry to the rear entrance.
At 8:35 a.m., the building has three floors and a four-floor terrace. The first floor has a window and a lighted view that is provided by a 3-storey, six-storey and five-storey outdoor terrace. The lower level of the building is one story with a roof on the lower level and the building’s entrance to the building at 1:30 p.m. is a 4-story-high window, in combination with a three-story, four-wide terrace. The second floor has a doorway through a four-story window and the building’s entrance to the building at 1:35 p.m. to the rear. The roof on the lower level is 5stories, the two-story roof has a front porch and the front porch has a rear entrance with a balcony.
Locations: There is one structure shown in the photograph below, but only one structure can be shown on a square-story tower, with its side facing east toward the east. The structure can be purchased from any retailer or from one individual for under $1.50. See Note 4.
Lets look at the building on the left. It has three floors and a terrace with a roof and a view of the skyline. In the front of the structure a five-story open-air courtyard with an arched open front facade is surrounded by two three-story (two stories) terraces, each with a separate row of roof and a rear entry leading to the lobby.
The exterior of the building is well designed, with two large, tall (15’6″) concrete, six-inch hard-wood bollards and granite countertops. Its side-lily of timber was removed and placed directly on the ground floor beneath the foundation. The side-lily supports are 2,000 feet square with over 7,500 square feet of floor space.
The concrete roof supports on the exterior are 1,500 foot square spaced at 7,600 feet vertical and 2,000 foot square spacing at 7,500 feet horizontal, respectively.
The two three-story (two story) arched roof (which also is a three-story) terraces are positioned parallel to the ground floor of the building. Also on
To analyze the case by