Studies On Countermeasures For Enhancing The Competitive Forces Of The Liuyang Fireworks

With the fireworks setting off in Beijing Olympic Games, more people enjoyed the full bloom and brilliant luster of the fireworks. At the same time, more people begin to pay attention to the city whose fireworks production technology and culture has been millennium in Liuyang, Hunan province, thus Liuyang Fireworks has became the topic of many people talk about at one time. There is no doubt that Liuyang Fireworks encounter a golden opportunity for development. However, Liuyang fireworks industry has long been inefficient and the management of enterprises is not so good, adding the technology and brand are lacking of competitiveness with foreign enterprises. Therefore, how to change the present situation of Liuyang fireworks industry, then upgrade it, and improve the competitiveness of the enterprises at home and abroad has become an important research topic.Industrial organization theory is the basis for Government formulating the industrial policies and promoting industrial development ."Market Structure - Market Conduct - market performance" is the core content of the industrial organization theory. In this paper, we studied the Liuyang fireworks industry and 12 major fireworks companies. By analyzing the current situation ,we could know the problems existing in the development process. Then use the SCP theory to illustrate the market structure, market conduct, market performance comprehensively ,which including market concentration, market barriers, product differentiation, Price behavior, brand building, economies of scale, product and technology innovation, market share and so on. And comprehensive analysed the logical relationship between the performance and market structure, behavior.On this basis we proposed the relevant industrial policies and recommendations as follows:(1)Government and industry associations must strengthen Liuyang fireworks industry regulation and guidance, establish and maintain a good competitive environment, promote industrial upgrading and regional brand-building (2)Corporations must improve their product innovation capabilities , improve their marketing model, establish an international brand, increase the competitiveness of their enterprises.In this way, I hope to be able to apply reference for the government, industry-related industries to formulate industrial policy theoretically and practically. What more I hope to be able to provide guidance to expand the enterprises visibility as well as their competitiveness.