Fedex In China Case Analysis

Although operating as its own entity, FedEx is still facing several key challenges in China. The domestic delivery market has always been steeped in competition with a high volume of local businesses. These local firms have developed with the market over time. They have strong ties within local communities, and who doesn’t vote for a want to promote a local business over a large foreign corporation. Although FedEx has years of international experience and been officially operating in China since the mid-1980s’ they are still a rather young player in the Chinese domestic market. Another challenge is the size and complexity of the market. While a fair portion of services are throughout the mainland an even greater portion of the higher paying industrial market and

At a long awaited meeting of analysts and investors Chairman and CEO Frederick W. Smith and his top executive staff briefed a plan categorizing what the economy, and FedEx, already knew: that the shipping environment from which FedEx produced $43 billion in annual revenue has been forever altered. In the process, certain precepts FedEx has held dear since its foundation will change as well. According to (Solomon, 2012) “FedEx's profit improvement plan, which has been under way for nearly a year but never made public until now, is expected to add $1.7 billion annually to its bottom line by 2016.” The improvements will come through a mix of cost cutting measures, and efficiency enhancements, virtually all targeted at FedEx Express, its largest revenue-producer, after the realization that the domestic air market is slowly growing stagnant. The effects of the overhaul will carry the company well into the next era of management. “The FedEx of the future will be an active player in such markets as freight forwarding, rail intermodal, ocean freight, supply chain management, customs brokerage, and postal services.” (Solomon,