FedEx started its operations in China in 1984. Since its establishment in the country, it has increased its coverage to more than two hundred cities in China. China’s economy is growing relatively fast and in order to keep up with this pace, FedEx has put measures into place to ensure that it meets the increasing requirements of its customers. The company has opened the largest operations in Shanghai as one of its commitment to penetrate the Chinese market. A flourishing economy in the country translates to increased demand for its products and services due the enlarged customer base. Also, in 2005, FedEx declared its plans to construct a new Asia Pacific hub at the Guangzhou Baiyun international airport. It is aimed at benefiting the Chinese population and the surrounding areas.
One of the greatest challenges that FedEx can have while operating in China is to keep up with the country’s fast rate of growth. This is because the country has a centrally controlled economy and as a result, there are considerable investments in the infrastructural development. Therefore, the decision by FedEx to build an airport is not only timely but also strategic so that it will keep up with the expanding business environment.
FedEx is has an immense global network and therefore, through its strategy to penetrate China’s market, it is a better position to keep up with the fast growing Chinese market. Also, by creating China as a hub of its operation in the Asia-Pacific region, the company will be able to maintain the growth pace. Furthermore, it plans to increase its product portfolio so that it can meet more tastes and preferences of its customers.
FedEx has constructed its business on the platform of moving fast with technological innovations and services. It is also apparent that the company is broadening its corporate strategy to incorporate the vibrant China’s economy. As a matter of fact, China is a primary node in the company’s supply chain and network operations.