Fedex and UPS in China - Competing with contrasting strategies
Q1) Compare the strategy of FedEx and UPS, highlighting why one is scoring over the other. About China Courier Service Postal services were available in China more than 2,500 years ago, modern postal services were offered in the country only since 1877. Known as the China Post, the postal services in China for a long time operated with obsolete equipment and few outlets. However, during the First World War, China Post was completely destroyed by the Japanese invasion. In 1946, the Ministry of Communication sought to rebuild the countrys post, transportation, roads and railways under a movement called the post modification movement. The Ministry recommended building postal transportation by air and in 1947 set up Air Post Central Offices in 27 important cities of China. A mobile train post office was also started. In addition, a Public Service Section was established to consult with the public and take their opinion. Strategies used by FedEx and UPS in China (US Courier Companies) FedEx (Federal Express), established in 1971 in Arkansas, US, is the originator of the express delivery industry. The company has since become one of the leading providers of overnight courier, heavy freight, and document copying and logistics services. FedExs infrastructure makes it the worlds largest express transportation company. FedEx provides transportation to more than 3.2 million items daily in 220 countries and regions. FedEx has more than 1, 38,000 employees, 50,000 deliver locations, 671 aircrafts and 41,000 vehicles in its integrated global network. Other than the up-to-the-minute package status tracking, FedEx delivers any size and any weight package across the globe. The company also maintains electronic connections with more than a million customers for online tracking through FedEx Ship Manager Software. FedEx recorded RMB 210 million revenues during 2001. In the current year 2014, FedExs revenues rose 3.5 to 11.84 billion and net income rose 34.4 to 2.03 billion. United