FedEx vs UPS - Competing with Contrasting Strategies in China
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Case Details:
Case Code : MKTG069
Case Length : 15 Pages
Period : 2002-2003
Pub Date : 2003
Teaching Note : Available
Organization : Federal Express Corporation, United Parcel Service
Industry : Logistics Solutions Company
Countries : China
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Targeting Customers
While targeting customers in China, FedEx offered standardized logistics services as it offered to customers in other foreign countries...
The Investments Made
Since its entry into China, FedEx had invested heavily on building its services network in China with a long-term approach.
Wilson Chung, general manager of FedEx China said, "China is one of
the most important markets for FedEx...
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Logistics Industry in China - Improving Prospects
China was viewed as the logistics industry's most important emerging market. According to an industry analyst at Merge Global Incorporated, an Arlington, US-based research company, China's air-cargo market was the world's fifth-largest and its emerging express market was valued at $400 million in 1998...
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Status in 2003
By 2003, the competition between FedEx and UPS was at its peak. Both the companies had been aggressively pursuing the Chinese market by regularly announcing new and better services, agreements and tie-ups.
Both the companies continuously revised their strategies according to the moves announced by their counterpart.
In January 2003, FedEx announced an agreement with Kodak to offer self-delivery services in 28 Kodak Express Shops in Shanghai... |
Exhibits
Exhibit I: A Snapshot of the Logistics Industry in China (2002)
Exhibit II: Revenues of Top Five Logistics Companies Operating in China
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