FedEx in China: The Competitive Strategies



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Code : COM0115

Year :
2006

Industry : Transportation

Region : China

Teaching Note: Available

Structured Assignment : Available

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China's Courier Service Industry Although postal services were available in China more than 2,500 years ago, modern postal services were offered in the country only since 1877. Known as the China Post, the postal services in China for a long time operated with obsolete equipment and few outlets. However, during the First World War, China Post was completely destroyed by the Japanese invasion. In 1946, the Ministry of Communication sought to rebuild the country's post, transportation, roads and railways under amovement called the "post modification" movement. The Ministry recommended building postal transportation by air and in 1947 set up Air Post Central Offices in 27 important cities of China. Amobile train post officewas also started. In addition, a Public Service Section was established to consult with the public and take their opinion..

Competitive Strategies of FedEx in China FedEx, established in 1971 in Arkansas, US, is the originator of the express delivery industry. The company has since become one of the leading providers of overnight courier, heavy freight, document copying and logistics services. FedEx's infrastructure makes it the world's largest express transportation company. FedEx provides transportation to more than 3.2 million items daily in 220 countries and regions. FedEx has more than 1,38,000 employees, 50,000 deliver locations, 671 aircrafts and 41,000 vehicles in its integrated global network. Other than the up-to-the-minute package status tracking, FedEx delivers any size and any weight package across the globe. The company also maintains electronic connections with more than a million customers for online tracking through FedEx Ship Manager Software. FedEx recorded RMB 210 million revenues during 2001. In the nine months ended February 2006, FedEx's revenues rose 10% to $23.8 billion and net income rose 24% to $1.24 billion...

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