FedEx vs UPS - Competing with Contrasting Strategies in 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.

Case Details:

Price:
Case Code : MKTG069 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

International Marketing
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

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:

  Page No.
Introduction 1
Establishing Presence in China 2
Fedex - Developing the Services Network 2
UPS - Developing the Services Network 4
The Contrasting Strategies 5
Advertising and Promotion 5
Targeting Customers 6
The Investments Made 7
Logistics Industry in China - Improving Prospects 8
Status in 2003 10
Exhibits 13

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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