fex ups final

8/8/2019 Fex UPS Final

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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


3/14


4/14

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


11/14

UPS - SWOT

OptimizedInvestment

Local Image StrongRelationship

Lack of Own AirLogistic System

Lack in BrandAwareness

Customer Basewith Chinese

Operation Premiumshipment overcheap cargo

EstablishedCompetition

HeavyInvestment


12/14

Kjj

Kj

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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

fex ups final

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