ICMR Case Collection
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ICFAI Center for Management Research
FedEx vs UPS: Competing with
Contrasting Strategies in China
MKTG069 – Sample Questions and Answers
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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.
For use by students of Icfai Flexible Learning programs.
Not to be reproduced or distributed in any form or by any means.
2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be
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MKTG/069
FedEx vs. UPS: Competing with Contrasting Strategies in China
Sample Questions and Answers
Question 1. FedEx entered into China in 1984 through a joint venture, while UPS entered
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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.
Ans 1. Legal regulations in China stipulate that a foreign logistics management company can enter
into a partnership 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.
Fedex’s Strategy
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FedEx entered China in 1984 by acquiring Gelco Express International, a UK-based courier
company, whose operations spread across...