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 floor. Companies were forced to hire cheap labor, which consequently led to poor production practices and quality materials. This resulted in “low-quality-fireworks-related damages and injuries”; and, pushed increased stricter regulation regarding fireworks. As competition grew more intense, companies …showed first 75 words of 977 total…

…showed last 75 words of 977 total…efforts into future growth and prosperity while enjoying a slow but gradual increase in profit margins. Also, a new competitor should have strategies in position for adaptive reactions to changing circumstances from initiatives to out compete rivals to defensives to guard against threats to the company’s well being. In addition, strategic alliances and collaborative partnerships or mergers should be considered to better improve the strength and power of a newcomer should the need arise.