This case illustrates how two American based companies enter a foreignmarket and how different the strategies are that they used.

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"Air transportation now serves as the circulatory system of the global economy, carrying people, products and services to marketplaces around the world."

SRI International

As we look at two American based giants in international package delivery, this case illustrates how they entered a foreign market and how different the strategies are that they used.

FedEx and UPS, both American corporations, have contrasting styles. FedEx describes itself as a company that 'sizzles' whereas UPS says it holds a 'low profile'. When they entered the Chinese market, FedEx took more risks than UPS did. For example, FedEx invested millions of dollars to build a network (by spending $880 million on buying Flying Tiger Line Inc. for instance) similar to the one the company has in the US, whereas UPS leased space on other companies' planes.

In the process of setting up operations in China, UPS emphasized its global networks and stability and the company paid close attention to how Chinese business is conducted. UPS marketed itself as a company that considers the building of relationships to be important following Charles Adams', UPS's top executive, comments. "We're a quiet company... sometimes we're the student