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 and examines how the expansion strategies of both companies have changed with the improving business prospects in China, following its entry into WTO.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Entry and expansion strategies of FedEx and UPS in China.

Keywords

FedEx, United Parcel Services, UPS, Logistics industry in China, Logistics management, Distribution network, Advertising, Promotion, FedEx-UPS rivalry, Expansion strategies in China, Business environment