Last updated: February 17, 2019
Topic: BusinessLogistics
Sample donated:

July 13, 2005, the Federal Express Asia-Pacific president of Cunningham and the president of Guangdong Airport Management Corporation Liu Jing formally signed a contract, the Federal Express Asia-Pacific hub at Guangzhou New Baiyun Airport will be settled. This marks the full launch of FedEx in China, and the layout of the Chinese market. The face of Federal Express building in an annual rate of 5-7 branches, DHL had to increase vigilance and active war of defense.

When the competitors get rid of the limitations of the policy (joint limits), and we Experience in the mature markets to China, when an exact copy, DHL37% of the market is far from people to feel safe. In the Chinese market for international express industry, Federal Express and DHL’s competition will open up with the policy and all-round upgrade. Federal Express and DHL in the competition, we can see from the following aspects of their respective advantages and disadvantages, which have a rational pattern of their competition to judge. , localization advantages and the advantages of globalization At present DHL, Federal Express between the PK, contention is the Government’s ‘preference’, who owns a government relations, who has more policies. However, with the express delivery industry, gradually opening up, DHL owned by the policy advantages will no longer be obvious, competition will compete for the Government’s favor turned to customers of all ages.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

In the Chinese market, international logistics industry, DHL (DHL) companies have localized distribution networks and seize advantage of opportunities. DHL has good financial strength, operational experience and technology, while Sinotrans even understand the country better at government public relations. However as China’s opening up the logistics industry, DHL relative to Federal Express, the business of globalization in general do not have the advantage, but International Logistics is a global network of systems competition.

As a company with the advantages of globalization in relation to changes in the localization with a localization advantage of the shift to globalization, the relatively easier. That is why even though 37% of the market share is still not enough to sustain confidence in DHL’s competitive reasons. 2, the advantages and disadvantages of joint ventures Compared with Federal Express, DHL in China’s biggest advantage is that they encountered a very good partners, most recently with the DHL-Sinotrans has signed a 50-year contract, thus they become a model of a joint venture.

The advantage of this joint venture is mainly embodied in the Chinese market has not fully opened under the policy advantages, but with the liberalization of the market, this advantage will gradually lost, while the joint venture produced by a number of contradictions and even this advantage could be into a disadvantage. For many multinational companies, the joint venture is only a forced choice. Whether in the automotive Industry or the financial sector, they would prefer tradition and ability according to their own independent business in China.

When the market is liberalized to allow them to operate independently, they are anxious to kick of the Chinese Government Chuaikai. Therefore, in the long run, an independent joint venture in terms of action than the, perhaps more efficient. 50% -50% of the Structure inherent to the joint venture to bring the instability of the troubles. 3, the regional competitive advantage Federal Express is clearly trying to establish bases in the South China region advantage, because in the Yangtze River Delta, DHL has many years of accumulated network and market share.

China’s economy to the Yangtze River Delta and the Pearl River Delta as a leader, on behalf of the two major developed areas, the volume of business logistics is also the largest. To the Chinese market, Li Zhu legs, Federal Express must be at least in these two markets to establish a competitive advantage. Federal Express Asia-Pacific hub at Guangzhou New Baiyun Airport settled clearly told the opponent, for the PRD market, exert its utmost to Federal Express. Conceivable, South Federal Express and DHL will become a ‘Liaoning-Shenyang Campaign’.