The Development Strategy And Project Fulfilment Of China 3PL Market For UPS

In terms of the China's commitment to WTO, China will permit the foreign logistics company to set up their own company and operate in express and logistics fields in China from Dec.11, 2005. The foreign logistics company, especially four big logistics, namely UPS, Fedex, DHL and TNT, will pay more attention to China's Third Party Logistics industry as well as their traditional express industry, which is full of potential opportunity. Third Party Logistics industry development in China is only in the primary stage, as China is becoming the "Manufacturing factory" of the whole world, there exists the immense need for Third Party Logistics in China in the future. Any company who wants to enter the China's logistics industry will not miss such wonderful chance. On the other hand, as the whole environment for logistics industry in China is not so good until now, the company must establish and develop their strategy and tactics respectively according to their own situation. Hence, the company can be familiar with themselves as well as competitors, and get both excellent achievement and market share.The theory and method used in the paper are mainly three aspects below: the competition theory which mainly includes competition strategy, core competitive capability and outsourcing. The competition theory analyses the cause that third party logistics arise and what strategy UPS should adopt in china's market; the strategy analysis method which main includes PEST analysis, SWOT and TOWS analysis, it analyses the marco environment and UPS's strengths and weakness; the relevant Marketing theory which mainly includes market subdivision and select, positioning, 4Ps and 4Cs marketing theory, it used to analyze the feasible methods UPS could use after strategy was made.Firstly, the paper analyzes the appearance cause of third party logistics, presents the current status in China, analyses the third party logistics demand of china enterprises and the problems they met nowadays. Then, the paper expounds the UPS's market subdivision, select and positioning, presents UPS's strengths and weaknesses via SWOT and TOWS, bring up the development strategy to UPS in China's third party logistics market. Finally, after drawing up the strategy for UPS, analyses the current possible methods and projects for UPS in China's third party logistics Market.