This case details the growth of FedEx's business in Asia. FedEx executives recognized very early on the importance of China. Over the last 20+ years, FedEx has focused on this growing market as the center of its plans for growth in Asia. As a result of early planning, efficient organization, effective leadership and appropriate controls, FedEx now has 39% of the China-US air express market (DHL has 27%). In 1989, FedEx bought out one of its partners who was struggling but had permissions to fly into almost every country in Asia. Recently, FedEx decided to move its main hub from the Philippines to Guangzhou, China by 2008 at a cost of approximately $150 million.
1. Why has FedEx been so successful in Asia
2. Can competitors imitate FedEx's approach in international markets and take market share away from the company? Why or why not?
3. Is the FedEx move to close its hum in the Philippines and build a new one in China a good decision for its Asian operations? Please explain.
4. Can you identify the application of the managerial functions of planning, organizing and controlling in FedEx activities? Please explain.