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UPS in India Time to Shift Gears Case Solution

Solution Id Length Case Author Case Publisher
2870 1466 Words (7 Pages) Frank T. Rothaermel, Srikanth Prabhu McGraw-Hill Education : MH0013
This solution includes: A Word File A Word File

The scenario looks at how UPS changed its approach to India after the Goods and Services Tax (GST) was implemented. Regardless of previous alliances, UPS lagged behind competitors in India. The opportunity for expansion brought about by Narendra Modi's economic initiatives prompted UPS to modify its Indian approach. The primary factors to be considered are the company's past performance and strategies for global expansion, in comparison with India's complex market, which includes challenges with the infrastructure and an emerging sector for transportation. UPS faced significant decisions that were necessary due to competition from competitors such as DHL-Blue Dart. When evaluating alliances, mergers, or organic expansion, Ms. Page, a senior executive managing UPS's the Asia-Pacific area plan of action, found it challenging to align worldwide objectives with the unique requirements of India. The development of UPS's successful the nation planning can be credited to segmentation efficiency, choice-making regarding the post-GST entry approach, and handling a variety of regional factors.

Following questions are answered in this case study solution

  1. Given your knowledge of Chinese logistics capabilities, compare and contrast the logistics infrastructure in India with that of China. Why is the infrastructure so much better in China than in India?

  2. How would proposed investments and regulatory reforms improve logistics operations for firms, such as UPS, in India? Based on your knowledge of India, why might the investments and reforms be difficult to undertake successfully?

  3. What do you recommend should be the best strategy for UPS to grow its operations in India? Which market segments are best for growth? Should UPS grow internally, by joint venture or through acquisition?

Case Analysis for UPS in India Time to Shift Gears

1. Given your knowledge of Chinese logistics capabilities, compare and contrast the logistics infrastructure in India with that of China. Why is the infrastructure so much better in China than in India?

The logistic infrastructure of India and China varies greatly in terms of development and efficiency. Talking about the railway and road networks of both countries, a few differences can clearly be drawn from the case. China has made significant investments to build its transportation infrastructure, including a vast rail as well as road networks. These are well-maintained as well as constructed, and they efficiently aid in the movement of merchandise throughout the nation. China's commitment to excellence and connection, along with ongoing financial assistance from the authorities, have contributed to the country's expansion in transportation and distribution. Even though the nation of India has a large roadway system, there continue to be issues associated with it because of congestion, insufficient upkeep, and regional variations in conditions. Exhibit 5 shows that the longest road networks are found in remote regions. Even with their size, such networks may still need to be further developed and improved upon in order to match the Chinese logistics system in terms of effectiveness.

Apart from this, Chinese ports that includes the ones located in Shanghai, Ningbo-Zhoushan and Shenzhen, are the most efficient and effective and tend to be the most significant in the world. Their modern technology allows them to manage enormous amounts of cargo with efficiency and improved operations. Whereas India has an array of ports, the country's competitiveness is being harmed by inefficiencies in operations, prolonged clearance times, as well as capacity constraints. Although there has been development, additional work needs to be performed to enhance the infrastructure and connectivity. Furthermore, China has its well-maintained airports and strategically located air freight facilities. This network of roads makes it simpler to move cargo locally as well as globally, which accelerates up logistics procedures. However, talking about India even though the country has an abundance of airports, not all of them have been set up for effective air cargo operations. The overall efficiency of air freight movement is affected by certain airports' lack of the necessary infrastructure and technological advances. This sector calls for greater modernization and investments.

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