...China 2015: Transportation and Logistics Strategies Leadership requires innovation, expansion and redesigned networks A s China’s economy grows, so grows its transportation and logistics industry. China is becoming a more mature and self-confident country and a driving force in the new global economic structure, and this is bringing new challenges and opportunities to the five sectors of the country’s transportation and logistics industry — express, road freight, air freight, contract logistics and international freight forwarding. How can Chinese companies improve the country’s transportation and logistics environment? Leadership in this industry requires innovation, expansion and redesigned networks. China’s extraordinary economic growth continues. Even as the global economy struggles to recover from the financial crisis, various statistics indicate that China’s economy has emerged resilient, with rapid growth expected to last into the foreseeable future. In this context, the transportation and logistics industry in China is also poised for major growth over the next five years, portending significant changes for its five main segments: express, road freight, air freight, contract logistics and international freight forwarding (see figure 1 on page 2). As the boundaries between these segments blur, consolidation will accelerate and network coverage and density will grow. At the same time, an increasing focus on sustainability will add new pressures to cost structures....
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...Introduction DHL Worldwide Express headquartered in Bonn, Germany, a privately held worldwide delivery service comprised of DHL Airways and DHL International, is the world’s oldest and largest international air-express company. They begins by operating door-to-door express delivery express, transporting documents only between San Fransisco, California, and Honolulu, Hawaii. DHL was founded by three young shipping executives; Adrian Dalsey, Larry Hillblom, and Robert Lynn who were casting about for a way to increase turnaround speed for ships at ports. On 25 September 1969 they incorporate DHL. In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority in 2001 and completed the purchase in 2002. Finally, by 2003 this company status is under the business group of Deutsche Post World Net (DPWN) Germany. Deutsche Post then effectively absorbed DHL into its Express division, business units and subsidiaries. Currently they delivering to over 70,000 destinations in 227 countries with 6,500 offices around the world, the company had over 150,000 employees globally. Belgium-based DHL International (DHL), in collaboration with its Chinese partner; Sinotrans which was also known as the China National Foreign Trade Transportation (Group) Corporation, launched an international express service, in China. Its core business was transporting documents and packages, which was a door-to-door delivery service particularly targeting parcels and freight items. The service...
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...UESTION FOR DISCUSSION 1. FedEx entered in to China in 1984 through a joint venture, while UPS entered China in 1988 through an agent partnership relationship. Critically examine the contrasting strategies adopted by both the companies, while entering and expanding their service network in China. The case discusses in detail about the entry and expansion strategies of the two US-based logistics companies - FedEx and UPS in the Chinese market .The case examines the contrasting strategies adopted by FedEx and UPS in their efforts to establish presence in China. FedEx followed an aggressive, high risk, more investments approach to expand its services network in China which enabled the company to capture higher market share .On the contrary, till the late 1990s, UPS followed a conservative, low risk, low investment approach to establish its presence in China. The case brings out the contrasting elements of the strategies adopted by both companies including establishing the services network, advertising and promotion, targeting customers and the investments made. Finally, the case examines how the expansion strategies of both companies have changed with the improving business prospects in China, following its entry into WTO. The case discusses in detail the entry and expansion strategies of the two US-based logistics companies - FedEx and United Parcel Services (UPS) - in the Chinese market. The case examines the contrasting strategies adopted by FedEx and UPS in their efforts...
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...Standard Chartered China becomes first international bank to launch Alipay’s Express Payment service Providing even more customer convenience with new express payment service 15 February 2012, Shanghai, China - Standard Chartered Bank (China) Ltd and Alipay today jointly announced the launch of the new Standard Chartered - Alipay Express Payment service. The launch of this new service innovation is a reflection of Standard Chartered China‘s commitment to customer service excellence and a first for international banks in China to provide a service which enables debit card holders to safely and conveniently pay off their online purchases, anywhere, anytime. Standard Chartered China debit card holders can now join 40 million other users of the Alipay Express Payment service to make secure and convenient purchases with as many as 460,000 online merchants worldwide that offer Alipay as a payment option, including Taobao.com and TMall.com. To use the Express Payment service, users do not need to register for online banking but must provide their debit card number, mobile phone verification code and other related information. Once approved, users need only their Alipay password and mobile verification code to complete transactions. Standard Chartered China and Alipay have implemented a rigorous security system to provide consumers with ease-of-use and account protection. The state- of-the-art security system reduces the risks caused by Trojan horses and phishing links...
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...AMERICA, INC.: WHO WILL DELIVER RETURNS FROM CHINA? On April 17, 2006, the International Air Cargo Association hosted its first-ever meeting in China. The location could not have been more appropriate. China was shaping up to be the world’s most significant market for air cargo, and Yan Yuanyuan, director general of China’s General Administration of Civil Aviation, had just announced that China would be opening up its air cargo market to an even greater degree. The major global cargo companies had been picking up their level of investment in China and were poised for growth: FedEx Corp. had just begun construction of a major regional hub in Guangzhou and already had over 200 Chinese cities in its international network, and United Parcel Service of America, Inc. (UPS), was just completing a new logistics hub in Shanghai and had recently begun domestic Chinese express package services. The question on the minds of many was which of these two cargo giants was going to make the most of this opportunity. Spurred in part by entry into the World Trade Organization in 2001, growth in trade with China had accelerated and the need for cargo shipment and logistics support had skyrocketed. On June 18, 2004, the United States and China reached a landmark air-transportation agreement that quintupled the number of commercial cargo flights between the two countries. The agreement also allowed for the establishment of air-cargo hubs in China and landing rights for commercial airlines...
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...Sylvia 14308311 Hillary Radcliff Writing II, TC-B 2016-06-13 Outline Title：What influence did Taobao bring to China? Thesis statement With the rapid development of Internet, shopping online has become an indispensable choice. Taobao is, absolutely, a true winner in China. Except for the great achievement they had made, for example, enriching the variety of commodity and offering job opportunities, Taobao has also brought a lot of problems which cannot be ignored. Para1. Taobao brings convience to people. * Variety of commodity; * Different ways of shopping; * Cheaper price. Para2. Economy growth and industry transform * Job opportunities; * Express delivery industry; * The double 11 shopping festival in China made by Taobao. Para3. Express delivery created a lot of pollution. * Excessive packaging; * A plenty of trees were cut to make cardboard boxes； * Increasing carbon dioxide. Para4. Shoddy goods and Taobao has stimulated the action of hurting intellectual property right. * Price disorder, malign competition make sellers tend to sell fake or shoddy goods. * Taobao gives pirated copies a convenient way to flood into the market. Conclusion: Taobao aims at creating the world’s preferred online retail shopping district. For the purpose of an environmentally friendly promotion of Taobao e-commerce, Taobao should change and improve their future strategies. Bibliography 2016-05-19 1. Some information about...
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...Running head: SWOTT ANALYSIS OF MEXICAN FOOD EXPRESS Strategic Plan Part II: SWOTT Analysis of Mexican Food Express Strategic Plan Part II: SWOTT Analysis of Mexican Food Express Mexican Food Express is one of the most important components under the Yum Brands umbrella of operation. By providing a Mexican inspired cuisine at budget prices, the Mexican Food Express brand has established a worldwide presence on 5 continents. This SWOTT analysis shows the various strengths, weaknesses, opportunities, threats, and trends that will impact the company in the future. With promising growth prospects in emerging markets, the company has implemented an aggressive plan to establish a dominating fast food throughout the world. This strategy poses several important risks and opportunities that shape the contents of the SWOTT analysis. Economic Trends Economic trends play a major role in the strategic decisions of Mexican Food Express. The brand has an ambitions global growth plan that is sensitive to economic changes. For example, the company reports that China and India are it’s main targets for new restaurant locations and expects see significant growth as economic conditions improve (Yum! Brands 2012). As income levels rise in these countries, it is expected that new franchise owners will be eager to implement proven restaurant concepts into the local community. In addition, higher incomes will provide greater opportunity for a loyal customer base. However, if economic conditions...
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...Ming Huang 2016/4/1 S.F. Express development in China Abstract SF Express emerging markets as China's express delivery companies, committed to improving the efficiency and improve the delivery of express transport service quality. The purpose of this study was to further investigate the impact of the SF Express in the different regions and SF Express courier services in China. The data collected is used to explain the purpose of the SF Express and stakeholders. Introduction S.F. EXPRESS in Guangdong, China was established in 1993, is mainly engaged in international and domestic express delivery business of Hong Kong enterprises. Initial business courier business today between Shun De and Hong Kong, with the increase in customer demand, S.F. EXPRESS service network extends to Zhong Shan, Pan Yu, Jiang Men and Fo Shan, S.F. EXPRESS is one of China express delivery industry's fastest courier companies. After ten years of development, S.F. already has more than 60,000 employees and more than 4,000 Taiwan-owned commercial vehicles, a more than 30 subsidiaries, more than 2,000 self-built outlets, service network covering more than 20 provinces, municipalities Hong Kong and Taiwan, more than 100 prefecture-level cities. To give customers better service delivery, SF still continue to invest heavily in strengthening the company's infrastructure, improve the technological content of equipment and systems, and improve the business skills of employees, their quality and sense...
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...What this case is about FedEx vs. UPS China & US agreement for the establishment of air-cargo hubs in China and landing rights for commercial airlines at any available airport China is battleground for the two package delivery giants Assumption: success in China was widely seen as the litmus test for corporate survival in the new millennium No guarantee for how new cargo routes would be allocated between UPS and Fed Ex Which company was better positioned to attract the capital necessary to win this competitive battle? Current facts FedEx had largest foreign presence in China invented customer logistical management innovative, entrepreneurial, operational leader 2003 assets: $15.4 B Net Income: $830 M Revenue: $22.5 B Performance assessment: superior financial returns No unions – flexible with costs Model asset attentive UPS world’s largest package-delivery company historically bureaucratic and industry follower overhaul of image repositioning as leading provider of logistics and supply-chain management services small-package market - $60 B vs. worldwide supply-chain market is $3.2 T everything from the moment something gets made until it gets delivered for final delivery, and then after market, it’s parts replacement 2003 assets: $28.9 B Net Income: $2.9 B Revenue: $33.4 B Performance assessment: long-term competitive return History of FedEx 1971 Fred Smith Yale Purchase planes instead of using cargo space on passenger airlines like competitors Largest venture-capital start-up...
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...customers worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners. UPS Mission Statement (Excerpt) UPS hubs in China as of 2009: Shanghai and Shenzhen FedEx hubs in China as of 2009: Guangzhou Figure [ 1 ] - Source: http://www.travelchinaguide.com/map/ Introduction June 18, 2004 marked the start of an important international trend in logistics and carrier services. The U.S. and Chinese government came to an agreement that allowed the development of air cargo hubs and landing rights for commercial airlines in China. This pact not only opened up extensive new opportunities for the airborne market in general, but gave FedEx and United Parcel Service (UPS) exclusive cargo transportation rights (Bruner & Carr, 2010). At the time, FedEx was winning the battle for China, with its Chinese volumes nearly doubling from 2003 to 2004. Despite this, rival UPS still held the title as the world’s largest package-delivery company, and had been active in China since the late 1980’s (Bruner & Carr, 2010). FedEx had only done business in China since 1995 (Roth). Because of the importance of China to the shipping and logistics industry, this paper uses the degree to which both FedEx and UPS achieved...
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...CONTENTS I. Introduction……………………………………………………………………………….2 II. Company Overview……………………………………………………………………..3 Company Background……………………………………………………………...3 Services Offered……………………………………………………………………..4 SWOT Analysis……………………………………………………………………...5 III. Environmental Analysis………………………………………………………...……13 PESTEL Analysis…………………………………………………………………..13 Competition Analysis………………………………………………………………16 IV. Marketing Plan…………………………………………………………………………16 Marketing Goals…………………………………………………………………….16 Marketing Strategies……………………………………………………………….17 Marketing Mix……………………………………………………………………….20 Marketing Budget…………………………………………………………………..22 V. Recommendation………………………………………………………………….…..23 INTRODUCTION The competition in the business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000; 2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. Traditionally, marketing...
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...4 Case 4 mentions about the competition between two leading companies in package- delivery market. FedEx which is the largest foreign presence in China, with 11 weekly flights, serving 220 Chinese cities, so the company’s volumes in China had grown by more than 50% between 2003 and 2004. UPS which is the world’s largest package-delivery company and dominant parcel carrier in US, serving 200 cities in 2003. FedEx had virtually invented customer logistical management, and was widely perceived as innovative. Historically, UPS had reputation for being big, bureaucratic and an industry follower. Two companies have their own market, an individual characteristics, and inconclusive. Thus, not only based on the development and operation of the two companies, the analysis also relied on the special purpose financial ratios ( especially Economic Value Added (EVA), an effective measure and rapid for firm within an industry) to find which company has more competitive advantage. II. INTRODUCTION 1. FedEx corporation: [pic] FedEx, formally known as Federal Express, started delivering packages and freight on April 17, 1973. The company was founded by Frederick W. Smith, a Yale University graduate. Federal Express offered overnight and second-day delivery to 25 cities in the United States. The company started in Memphis, Tennessee, and it is still in that location today...
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...I. Introduction Globalization coupled with technology has dramatically altered the competitive landscape of corporate America. As corporations fight for scarce resources, and savvy consumers equipped with greater knowledge through the World Wide Web gain bargaining power, the necessity for big business to improve supply chain management procedures has intensified. The explosive growth of emerging markets like China and India creates both opportunities and challenges in transporting goods and services. The businesses that can leverage technological advances are in a position to garner market share and add value to their shareholders. FedEx has become a world leader in the parcel delivery business. The name FedEx evokes thoughts of getting packages to customers the next day. FedEx now is used as a verb to tell customers that a shipment will be sent so that it is received the next day. Delivering a product on-schedule is the result of multiple business processes working seamlessly to create a Value Chain that yields a firm greater profit over costs (Dess, Lumpkin, & Eisner, 2007). A primary activity of the Value Chain is Supply Chain Management (SCM). Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer ((2006). Supply Chain Management Retrieved April 24, 2007, from http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html ) Running...
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...security of the electronic money. Similarly for corporations the use of paper-less money brings uncontestable benefits in terms of management, efficiency and security of money flows. The global volume of non-cash transactions is approximately 260 billion (2009 data) and is growing globally at an average rate of around 7%, with Asia-Pacific and Emerging Markets growing a higher rate than USA and Europe. USA represents without any doubt the largest non-cash payments market in the world (40%) followed by the Europe (21%) and mature Asia-Pacific (all together 83%). In terms of future trends, non-cash payments are expected to grow at a very high rate in (37%) in CEMEA (Central Europe, Middle East, Africa) followed by Asia (23%, excluding China and India), BRICs and other mature economies in Asia-Pacific (14%), while Europe and North America will progress with much lower rates. For what concerns cards sub sector, we assist at a global level to a substantial growth in the use of credit and debit cards (9.7%) as they remain the preferred non-cash payment instrument globally (avg. 40%). More in general we notice that the average value per card transaction is decreasing in most markets as cards are becoming more and more popular for daily expenses. E-payments and m-payments account for less than 10% of...
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...movies revolve with drama of love, fantasy, journey, and self-discovery. In the period of Hong Kong return to China, a variety of movie address the issue of pursuing dreams, cherish old relationships, and search for new identities. These films included Comrades; Almost a lover story, directed by Peter Chan; Chungking Express, directed by Wong Kar-Wai, and Durain Durian, directed by Fruit Chan. Even though, these films were directed by different directors and produced in different years. These three films share some similar theme such as pursue of dream, cherish old relationships, and character change. The idea pursues of dream is one of the themes that these three film shares. In the 1990s, many mainlander unsure about what would happen after Hong Kong return to China, as result many mainlanders travel to Hong Kong and search for better job opportunities, and pursue their dream, one of the good example would be Comrades, Almost a lover story, In this films, two mainlanders, one named Li Xiao Jun (starring Leon Lai) role-play northern mainlanders. Another one was Li Qiao (starring Maggie Cheung) role-play southern mainlanders. Both of them have the passion to pursue their dream in Hong Kong. Xiao Jun’s dream is to bring his fiancé to Hong Kong, buy a small apartment and live happily together. Li Qiao’s dream was to get rich and buy a house for her mother in China. What makes Li Qiao and Xian Jun different was Li Qiao have a bigger ambitious than Xiao Jun, Li Qiao try to pursue...
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