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1、Case9FedExvs.UPS—CompetingwithContrastingStrategiesinChinaIntroductionFedExandUPSaretwoU.SbasedlogisticscorporationswhichenteredintoChinainthe1980s.However,bothtwocompaniesadoptedcontrastingentryapproaches.Asforexpandingstrategies,FedExadoptedaforceful
2、approachwhileUPSfollowedaconservativestrategytillthelate1990s.WiththeimprovedbusinessprospectsintheChineselogisticsindustry,theintensifiedrivalrybetweenFedExandUPSreacheditspeakgradually.FollowingChineseentryintotheWorldTradeOrganization(WTO),FedExandU
3、PScontinuouslyimplementedvariousnewservicesandagreementstograbChineselogisticsmarket.Obviously,thesestrategieshelpedbothcompaniesincreasetheirrevenuessignificantlysobothcompaniesexpectedtogainmoremarketshareinthefuture.EnteringandExpandingServicesNetwo
4、rkAtfirst,FedExcommenceditsoperationinChinain1984bymeansofjointventurewhileUPSenteredintoChinathroughanagentpartnershiprelationship.FedExpartneredwithmultinationalcompaniesinChinatobuildservicenetworkthusFedExfocusedonbuildinginfrastructureanddistribut
5、ioncentersinthefirstdecadeofitsoperationsinChina.ThoughjointventureprovidedFedExwithgreateropportunitiesthatareinaccessiblethroughotherstrategies,itbroughtmuchhigherinvestmentsandrisks.Onthecontrary,anagentpartnershiprelationshipsavedUPSfromhighrisks.U
6、nlikeFedEx,UPSfollowedalowinvestmentapproachthroughcooperationwithSinotrans.Besideslessrisk,thisstrategyalsocontributestoestablishingtheimageoflocalcompanyforUPS.Secondly,bothFedExandUPSstartedtoexpanditspresenceinChinaafterenteringChineselogisticsmark
7、et.FedExlauncheditsairservicesanddistributioncenterscontinuouslysince1996andtheseenabledcustomerstoreceivebetterservicefromFedEx.Withitsownservicenetwork,FedExconfrontedforeigncompaniesdirectlythroughawesternway.Similarly,UPSincreaseditsinvestmentsines
8、tablishinginfrastructureandfacilitiesinChinatocoveritspreviousshortageinservicenetwork.Nevertheless,insteadofbuildingservicenetworkbyitself,UPSpreferredtocooperatewithlocalcompaniestoimproveitsbrandidentity.ContrastingElementsinExpandin
