Abstract

This Case is also available in Chinese Language. For more details refere to OCMKTG069 in “Part - B”. 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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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

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