Academic journal article Journal of the International Academy for Case Studies

Fedex in China

Academic journal article Journal of the International Academy for Case Studies

Fedex in China

Article excerpt

DISCUSSION QUESTIONS

1. Should FedEx stay in the Chinese market, or withdraw its business?

Option 1. Withdraw from the domestic express delivery market

FedEx cannot expand its domestic market without gaining operation licenses from the Chinese government. This implies that FedEx's service coverage in the domestic delivery market depends on whether the Chinese government issues operating licenses to FedEx or not. This increases the uncertainty in the Chinese domestic market.

Furthermore, intensive competition exists in the domestic market with local firms such as EMS and SF Express. Local companies can increase their service coverage without getting licenses from the government. This allows them to reach more places and have more efficient distribution systems than FedEx. …

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