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FedEx vs UPS - Competing with Contrasting Strategies in China

FedEx vs UPS - Competing with Contrasting Strategies in China
Case Code: MKTG069
Case Length: 15 Pages
Period: 2002-2003
Pub Date: 2003
Teaching Note: Available
Price: Rs.500
Organization: Federal Express Corporation, United Parcel Service
Industry: Logistics Solutions Company
Countries: China
Themes: International Marketing
FedEx vs UPS - Competing with Contrasting Strategies in China
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses in detail about the entry and expansion strategies of the two US-based logistics companies - FedEx and UPS in the Chinese market. The case examines the contrasting strategies adopted by FedEx and UPS in their efforts to establish presence in China. FedEx followed an aggressive, high risk, more investments approach to expand its services network in China which enabled the company to capture higher market share. On the contrary, till the late 1990s, UPS followed a conservative, low risk, low investment approach to establish its presence in China.

The case brings out the contrasting elements of the strategies adopted by both companies including establishing the services network, advertising and promotion, targeting customers and the investments made. Finally, the case examines how the expansion strategies of both companies have changed with the improving business prospects in China, following its entry into WTO.

Issues

  • Understand the entry and expansion strategies of large multinational logistics services companies in an emerging market like China

Contents

Introduction
Establishing Presence in China
Fedex - Developing the Services Network
UPS - Developing the Services Network
The Contrasting Strategies
Advertising and Promotion
Targeting Customers
The Investments Made
Logistics Industry in China - Improving Prospects
Status in 2003
Exhibits

Keywords

Entry, expansion, US, logistics companies, FedEx, UPS, Chinese market, contrasting strategies, presence, aggressive, high risk, services network, capture, higher market share, conservative, low risk, low investment approach, contrasting elements, services network, advertising, promotion, targeting customers, investments made, WTO

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