Research On Development Strategy Of UPS China Domestic Express Business

After China’s reform and opening up, with the rapid economic growth anddevelopment of export-oriented economy, China’s express delivery industry was born.In1979, Japan’s overseas news spread, Inc.(OCS) signed an agency agreement withChina National Foreign Trade Transportation Corporation then established the firstexpress company in China. And in the following three decades, with the developmentof China’s consumer market and e-commerce boom, China’s express delivery businessshowing a growth spurt. And by the opportunity, many private express companiesdeveloped rapidly.Seeing the enormous opportunities of the Chinese market, as one of the fourinternational express delivery giants, UPS cooperated with Sinotrans and entered theChinese market from1988. After20years of development, UPS could offerinternational express, international air transport, maritime transport, supply chainsolutions, financial and other services in China and it can reach top3in internationalexpress market. Although UPS international express delivery business carried outwith a bang, but its domestic express business is still a blank. In accordance with theprovisions of China’s new "Postal Law" of2009, all the enterprises engaged inChinese domestic express business must obtain operating permits. Since2011, UPSstarted applying its license from national authorities in various cities. At the end of2013, UPS had got its license in33cities including Beijing, Tianjin, and Shanghai etc.Thus the development of UPS domestic express delivery business has started to puton the agenda and UPS needs to develop effective strategies to help carry out thedevelopment of its domestic express delivery business.This thesis analyzes and researches UPS China domestic express businessdevelopment strategy basing on above background to offer suggestion and referencefor UPS domestic business. Firstly, it describes the development status of UPS inChina and analyses its strategic environment of developing domestic express business from the external environment and internal conditions, then it uses the SWOT modelto find out the strengths, weaknesses, opportunities and threats of UPS. Based onthese analyses, it proposes the development strategy and implementation methods forUPS to develop its Chinese domestic express business. According to the analysis,UPS’ advantage lies in its service, excellent team, extensive industry experience andadvanced technologies. And its disadvantage is that the network coverage is poor,high price and low degree of localization. Therefore, in carrying out China’s domesticexpress business, UPS should take advantage of existing market opportunity andgovernment policy support, improve its domestic network and actively participate inmarket competition and industry institution construction. UPS should create positivecorporate culture, organize excellent service team, and change relative internalprocess and organization structure to achieve its development strategy. Then I believeUPS China domestic express business would get great and healthy development in thenear future.