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International Marketing - Essay Example

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“International Marketing” [University] [Instructor Name] FedEx Overview of the Company FedEx Corporation which was known primarily as FDX Corporation was started in America as a global courier service with its headquarters in Memphis, Tennessee…
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Download file to see previous pages In 2000, FedEx came about and a proper functional team was made, even of its subsidiaries. In 2004, FedEx also acquired Kinko’s Inc in order to expand itself in the general public. (Pride, et al., 2011) A few of the services FedEx offers are as follows: FedEx Ground FedEx Express FedEx SmartPost FedEx Freight FedEx Custom Critical FedEx Trade Networks FedEx Corporate Services FedEx Supply Chain Services FedEx Tech Connect FedEx Office All these services aren’t offered in all areas however the majority are. FedEx competitors include ARAMEX, BAX Global, DHL Express, United Parcel Service and many others. (Gilbert, 2012) FedEx China and globalization impact on the industry Over 400 cities in China are reached by FedEx in the present day. FedEx provides businesses and customers both a chance to explore their portfolio of services such as e-commerce, business services and transportation. They offer integrated applications for businesses as well with the help of operating companies. They also have the mark of a good company with honest and admirable employees and it has been focused on safety, ethics and the professional standards that need to be met to cater to the community and its customers. A Chinese retailer was finding it difficult to provide the customers with a fitting room experience in case they shopped online. And since online is the next big thing in the world today, this had to be figured out. FedEx Courier was the answer to the problem of the fitting room. FedEx delivers the order and they wait at the door while the customer tries on the clothes in the comfort of his home and if they wish to return it back, they simply have to hand it back to the courier service. And this was an opportunity that FedEx honed into since China has a huge population, furthermore around 1 million of that population has more that 1 million dollars of wealth and in this way, they have attracted the elite by providing them the best customer service there is to offer. So one of the questions comes to mind as to why has FedEx expanded to China and does major business operations there? China has been growing at a rapid rate over the years, probably one of the fastest in the world. It expands at a rate of around 9% per years and 20% of the world lives there. (Birla, 2005) China also has a purchasing power parity that is second highest in the world after US, which only makes more sense that FedEx expanded into China after it tapped into the US market. Globalization has reduced barriers and lead to a more interconnected world and so people demand goods and services from the influences of the outside world, more so than they did before. Their demands and their needs have changed over the years. China also hosts a US Embassy in Beijing and has four consulates over the country which helps businesses out by recommended trade professionals. US have also marked 14 cities in China which are the American Trading Centers. They import from USS and form 54% of the total imports which are growing at a rapid rate. Therefore US can also take advantage of this expansion. Globalization has helped to overcome barriers but has made protecting rights and tracking the developments in different markets a more difficult task. (Wetherbe, 1996) China also started creating economic zones and these encourage foreign direct investment and leads to flexible trading policies and incentives. China also offers ...Download file to see next pagesRead More
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