Express Opportunity in China

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Perspective Alexander Niehues Edward Tse Justin Zubrod Express Opportunities In China Packaging a Strategy For the International And Domestic Express Delivery Market Booz & Company is a leading global management consulting firm, helping the world’s top businesses, governments, and organizations. Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914. Today, with more than 3,300 people in 58 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage. For our management magazine strategy+business,…show more content…
However, despite the investment enthusiasm surrounding exponential growth rates, there are still huge challenges in doing business in China: Overregulation, fragmentation, a weak transport network, and congestion are holding back the industry. There are many risks for western companies attempting to China Express Delivery Market (2004-2008) in USD Billions and Major Drivers of Growth Foreign Trade Foreign Trade  2001-06 CAGR +30%  Import/export volume exceeding $1400 bn p.a. International Express Domestic Express Domestic Domestic Economic Economic Development Development  8-10% GDP growth in recent years  Expect 10% average growth of air cargo traffic next 20 years (Boeing) +28% 4,4 7,4 5,8 2,6 2,8 0,9 3,5 1,1 1,4 3,1 2006 1,9 3,8 2007E Foreign Direct Foreign Direct Investment Investment  FDI exceeding $60 bn p.a.  Outward FDI by Chinese Enterprises over $7 bn in 2006, growing at 26% 4,8 1,9 2004 2,5 2005 2008E Market Market Opening and Opening and State Support State Support Source: Market Research, Booz Allen Hamilton Estimate  WTO agreements  Closer Economic Partnership Arrangement (CEPA) When China joined the World Trade Organization (WTO), the country experienced a rapid market liberalization and modernization as well as rising domestic consumption. As a result, the Chinese express market continues to offer huge growth prospects for
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