scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 975
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 began to copy any new or popular product that came out to the market and under priced each other just to create sales The resulting rule of competitive forces in the fireworks industry which states that the stronger the collective impact of competitive forces the lower the combined profitability of participating firms p92 was shrinking and obliviating the profit margin of the industry Of the five competitive forces the case portrays that the strongest in the industry of fireworks is The rivalry among competing sellers in the industry This force drove the rest of the forces and became the initiator or catalyst to the cutthroat competitive industry The industry rivalry was centered on price competition to offer buyers the best and lowest price no matter the extenuating circumstances that would ensue This principle of competitive markets as stated on page 82 is better kwon as competitive jockeying among rival firms is a dynamic ever-changing process as new offensive and defensive moves are initiated Consequently due to the intense price competition the market prices fell well below unit costs forcing losses on mostly all the rival companies The weakest competitive force is the competitive pressures stemming from supplierseller collaboration and bargaining This is illustrated in the case when importers could deal directly with the factories to take the lower end price and in addition since there no switching costs they could play the suppliers against each other This meant that there was absolutely no collaboration between sellers and
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA