ICMR Case Collection
ICFAI Center for Management Research
FedEx vs UPS: Competing with
Contrasting Strategies in China
MKTG069 – Sample Questions and Answers
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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
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 entered China in 1984 by acquiring Gelco Express International, a UK-based courier
company, whose operations spread across...