Analysis Of China Southern Airlines Corporation Strategy

The larger an enterprise grows,the more challenges and problems it will face. That's why it is crucial for an enterprise to formulate and implement a company business strategy,which addresses the issue of how to deal with the continuously changing business environment,to elevate the core competence and capability,and the distinctive competence as well as insuring the continuous grow and long-term stability of the enterprise.Starting from aspect of the macro-economic and taking the air-transport characteristic into account,the author did research on the China macro-economic,the policies imposed by authority in civil aviation and the competition environment. Through this research,the author found out that:in the future 5 to 10 years or even a longer economic per iod,the economy of China will maintain a stable and fast increase.The international reciprocation and global trade will keep on strengthening. The life quality of the populace will keep on elevating.The travel and service industry will keep on developing.The implementation of the central government's policies like "the western development drive","the revitalization of traditional industrial base in northeast China",the industrialization and urbanization will create more demand for the air transport market.All the above factors will stimulate and increase the market demand for the air-transport.The civil aviation will step into its another surge.The reform of civil aviation will be deepened and there will be a transition of the government's function. The government will enhance its supervision on Chinese airlines,while at the same time diminishing the protection to the enterprises,opening the market and introducing the competition mechanism.The competition among the three largest air-transport groups will be more intense,due to they have the comparative competence after re-organization.The market will open and more foreign airlines will swarm in,as well as the low cost airlines come into being,the competition in civil aviation market will be intensified.Confronting with such opportunity,operation environment and competition,with SWOT analysis tool,the author studied through the company resources and competence of China Southern Airlines Co.,Ltd and concluded that:China Southern should insist on its own long-term business strategy for the objectives of making itself a powerful enterprise,realizing the fast and healthy development and completing its vision and mission statement.What's more,China Southern should endeavour to fulfill the strategic objective of its "eleventh five-year" plan,keep on cultivating its own core competence and capability,and then obtain its competitive advantage and establish its own distinctive competence.The author collected and processed material and information through seven areas: airline flight network,fleet acquisition and deployment,integrated operation,sales and marketing,human resource management,info-tech application and corporate culture construction.In this dissertation,the author brought forward the functional strategy proposal to enable the implementation of a integrated operation in all above functional areas,hence to realize the business objective of the company.Finally,the author produced a strategy for performance improvement of its long distance international flights which have led the airline suffer from consecutive great loss.