Research On Implementing The Cost Leadership Strategy Of Shenzhen Airlines

Chinese civil aviation will see a great opportunity with the recovery of the worldwide economy, high-speed growth of Chinese business, and the upgrade of people's consuming structure. But accompanied by the opportunity, comes along the threat when foreign airlines enter Chinese civil aviation market after the accession to the WTO and the further opening of the aerial industry. How to meet all the challenge is a serious problem that every Chinese airline should think about. Compared with ours, the foreign airlines can run the business at low cost. Our local airlines are short of valid need because of high operating cost. Therefore, make a research on how to carry our low-cost strategy is of great significance.This paper takes Shenzhen airlines as an example (passenger transportation only). Uses the method of integrating theory with practice, combined with he modern theory and the newest viewpoint including strategy management, managerial economics, organization behavior, financial management, marketing management, production management. It firstly studies the successful experience of American southwest airlines and the feasibility that it applied to China. Then it analyzes the external industry environment, competition environment of Shenzhen airlines. After finding out the Shenzhen airlines' internal advantage and disadvantage by using value chain analysis tool, it continues to use the method of SWOT analysis tool to make a research on the airline to decide on how to give full play to its interior advantage how to make the company more competitive and thus realize its all-round increase. Finally, the paper gives some advises for Shenzhen airlines on cutting down the cost.This paper establishes the cost construction model and values chain model for general aviation companies. This can be an important reference to the management of civil aviation. The strategic measures that mentioned in the paper are of great serviceability to any companies in aerial field or any other ones that have similar problems to Shenzhen airlines.