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Contrasting StrategiesVikas SharmaMahesh Nikhumbha
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TALK
Discussion Point Volumetric
China - Landscape
FedEx & UPS Entry Strategies
Expansion Strategy
Marketing & Promotion
FedEx & UPS SWOT
Take Away
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Volumetric
Frederick W. Smith(Chairman, President & CEO)
Founded 1971
Industry Courier
Headquarters - Memphis,
Tennessee Area Served Worldwide
Products Logistic
Daily Shipment 5.4 M
Revenue - USD 37.953 B
Operating income - USD 2.0 B
Net income - USD 1.125 B
Aircraft - 625
Employees - 280,000+
Scott Davis(Chairman/CEO)
Founded 1907
Industry Courier
Headquarter - Seattle,
Washington Area Served - Worldwide
Products Logistic
Daily Shipment 13 M
Revenue - USD 45.3 B
Operating income - USD 3.8 B
Net income - USD 2.15 B
Aircraft - 538
Employees 408000+
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Largest &GrowingEconomy
Air CargoGrowing@ 30%
Intra ChinaShippingGrowing@ 20%
Big LogisticCompanies
AlreadyOperating
China Relaxedits CargoPolicies
Inter ChinaShippingGrowing@ 25%
Connectivity toAll Airport
US-ChinaSigned New
TransportationAccord
Permitted toEstablishedDedicated
HUBS
China The RED Field
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Entry Strategy
Entered China 1984 via Acquisition ofGelco International
Aggressive & WesternStyle Advertisement
Partnered with Local Company toBuild Network & Distribution
Established Own Air Route FlyingOwn Aircraft In-Out of China
Received Permission fromCAAC, Setup ExpressDelivery Center
Entered China 1998
Minimum Advertisement withOld Fashioned Flavor
LeveragedLocal carrier & LeasingSpace to Fly In-Out of China
For GroundDelivery co-partnered withLocal Government Transporter
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Expansion Strategy
MarketExpansion
AdvertisingFocus on
Competitors
Customers
Relied UponExisting
Customer
Air ServiceExpansion
EventSponsorship
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Relationship& Brand
Awareness
ExpandGroundFleet to
Cover MoreCities
IntroduceOwn AirService
MarketExpansion
Expansion Strategy
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Marketing & Promotion
FedEx
Heavily Advertise Strategy
Publicizing Service Offering
Brand Management &Awareness Via Media
Companies
UPS
Low Advertising Strategy
Projected a Local Image
Sponsor Local Events
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FedEx - SWOT
Threat Opportunities
Weakness Strength
AggressiveMarketing
ControlledDistribution
Own AirLogistic
Real Time Status
Lack ofRelationship
Low Profit Margin
EstablishedCompetition
Heavy Investment
Co-operation withChinese Companies
Status SensitiveShipments
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UPS - SWOT
OptimizedInvestment
Local Image StrongRelationship
Lack of Own AirLogistic System
Lack in BrandAwareness
Customer Basewith Chinese
Operation Premiumshipment overcheap cargo
EstablishedCompetition
HeavyInvestment
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Take Away
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Take Away
1. FedEx used standard formula in china Aggressive Marketing
Heavy Investment
2. UPS used Quite Strategy
Learn Sometime, Teach Sometime
3. FedEx Facing bigger Risk because of its heavy Investment
4. FedEx faced Problem on
1. CulturalDisconnect with the Local Customer
2. Lacked Relationship
5. FedEx offerings are standard while UPS offered CustomizedServices
6. UPS instead of Investing relied upon Partners
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Thank You