FedEx vs UPS - Competing with Contrasting Strategies in China
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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 |
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
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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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