ICFAI Center for Management Research
FedEx vs UPS: Competing with Contrasting Strategies in China
MKTG069 - Sample Questions and Answers
This case was written by Vivek Gupta, ICFAI Center for Management Research (ICMR). It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
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ICFAI
Cuter for Management Research
MKTG/069
FedEx vs. UPS: Competing with Contrasting Strategies in China
Sample Questions and Answers
Question I. FedEx entered into China in 1984 through a joint venture, while UPS entered China in 1988 through an agent partnership relationship. Critically examine the contrasting strategies adopted by both the companies, while entering and expanding their services network in China.
L Legal regulations in China stipulate that a foreign logistics management company can enter into a pmtnership or joint venture with a Chinese company, but not enter on its own, to do business in China. Foreign companies are also disallowed from handling cargo business within Chinese cities, but they can operate in the international express cargo business.
ADS
Fedex's Strategy
FedEx entered China in 1984 by acquiring Gelco Express International, a UK-based courier company, whose operations spread across Europe and the Asia Pacific.