Federal Express: Expansion Strategies for the China Market
China's expanding trade had fuelled the increase in demand for express services. The government was expected to open the industry fully to foreign players by end 2005. Foreign express firms planning to enter or expand in this fast growing market would face a number of challenges — an underdeveloped and disparate transportation infrastructure, complicated and unclear customs procedures, protectionism by local government, and tight business control and bureaucracy. Federal Express initially used a local pick-up and delivery agent to serve the China market. Dissatisfied with its low market share after years of operating in China and convinced that the market would grow rapidly after the country's accession to the WTO, the senior management at FedEx decided to re-examine their long-term marketing strategy in China. The case examines the air express business in China and FedEx's alternatives for expansion.
Volume (Year): 10 (2006)
Issue (Month): 02 ()
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