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FEDEX IN THE CHINESE MARKET
Global Management Track
Recruitment Case Competition
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AGENDA
1. Executive Summary
2. About FedEx
3. FedEx and Major Competitors
- FedEx: Key Success Factor
- Major Competitors
4. Changes in Chinese Delivery Market
5. FedEx after Changes
6. Recent Response of Competitors
- Response to Domestic Changes
- Response to International Changes
7. Solutions
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Executive Summary
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Growth in trade flows to china, from china (¡ñForeign company in china)
China¡¯s deregulation, high annual grow rate
How to improve FedEx¡¯s international market share
As-is
To-be
Domestic
International
FedEx lost its Key Success Factor because of chinese express market change
International
Key Question
Domestic
H¡¦(»ý·«)
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technology, Reliability, and Service quality
Major Competitors
China Post EMS
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FedEx
Competitors
Exclusive Permission to Direct Flights
-11 direct weekly flights by 2003
DHL : No air rights to access the Chinese market
UPS : No direct flights until 2001
Leader in Southern China
-Direct flights in Guangzhou, and Shenzhen
-Giving 2 highly-priced US-China air routes to UPS instead of keeping UPS away from that area
DHL : No direct flights
(only processing gateways in Southern China)
UPS : No access to Southern China
Quality
-Own Infrastructure
FedEx Fleet, Distribution center,
Ground transportation
-New Technology
DHL : Dependent on other airlines and Sinotrans ground transportation
UPS : Reliance on commercial airlines and the Sinotrans logistics network.
FedEx : Key Success Factor
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Changes in Chinese Delivery Market
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Deregulation after WTO
- Previously, foreign companies barred from free entry