Study On The Cultivation Of Core Competence For Shandong Airlines

As a modern way of transportation, Air travelling which is fast, safe, and comfortable when comparing with other travelling ways, is an important part of the national economy in the modern society. The development level of air transportation is a symbol for the country’s political stability, opening-up and economic prosperity. After the founding of People’s Republic of China, especially since reforming and Opening in1980s, with the rapid development of national economy, China’s civil aviation industry has made tremendous progress. According to estimates, GDP increased by1%, can bring the growth of civil aviation industry1.5%. As per capita GDP and people’s income rise ceaselessly, the public for air travel needs is increasingly rapidly, and the requirements to aviation industry’s are also getting higher and higher. At the same time, the airline is facing more and more intense competition, which leads the industry average profit rate getting lower and lower.Nowadays the domestic market mainly occupied by Air China, China Eastern Airlines, China Southern Airlines and Hainan Airlines, Shandong Airlines Corporation Limited (referred to as the" SC") as a regional medium-sized airline, in the crevice of survival, competition and development environment. SC has to utilize all resources and advantages to build up its own core competence, to achieve its goal to be an100-year enterprise.Using the theories of strategy management and the core competence, taking SC as the study object, with the analysis of competitive market and SC’s characteristic, this paper will find the method to build the core competence.