Study On The Competitiveness Of The Firecracker Industry In Shangli County

The first year of the Twelfth Five-Year Plan has witnessed great challenges and opportunities for the national economic restructuring. Since the European debt crisis, in particular, profound changes have taken place in the international and domestic environments of our national industrial economic growth as well as in the comparative advantages. With these significant changes within the macro economy, it is of great significance to explore the best way of developing regional industries and promoting their competitiveness. When it comes to how to improve industrial competitiveness and avoid redundant construction, scientific and systematic analyses on various regions and industries are required. The long history that Shangli Firecracker Industry boasts and the critical role it plays in the local economy all makes it a typical industry. This paper carries out an analysis on the industry with the tool of the Michael Porter Diamond Model, which will not only provide a typical example to the industrial competitiveness analysis theory but also will add to the research of regional industrial competitiveness and strategic management.Based on Michael Porter's Diamond Model, the paper analyzes the integral competitiveness of the firecracker industry in Shangli County through a holistic study on its factors of production, market demand, development of spin-off industries, competition in the market and corporate strategies. Chapter One begins with an introduction. Chapter Two builds a theoretic frame for the research, Chapter Three elaborates on the course of the firecraker industrial growth. Chapter Four have a detailed analysis on the competitiveness, And problems existed in the industry and solutions that could be used to tackle the problems can be found in and Five. Chapter Six concludes the whole paper.The paper summarizes the main problems faced by Shangli County, including shortage in quality human resources, lack of say in the market, the relatively small scale of the industrial clusters and a lack of flexibility in government regulation. The paper also, from the perspective of the government, comes up with suggestions to achieve breakthrough in the four areas of industrial positioning, industrial structure, marketing channels and scientific research platform with a view to enhance the overall competitiveness of the industry.