China Southern Airlines Strategic Cost Management Based On Value Chain Perspective Study

Currently, a variety of capital continue to reduce the aviation industry barriers to entry, and other private capital began to enter the aviation industry, aviation market in a bid to carve a piece of cake. Our airline is facing enormous pressure on profit from the current situation, the fierce market competition compressed airline fare revenue is room for improvement, through the establishment of air transport-related industrial chain to pull the airline’s overall revenue growth requires a lot of money support, not easy to achieve in the short term, on the other hand, the air transport industry is a high investment, high risk, low-return industry, in order to improve the profitability of airlines, air transport companies need to improve cost management, to improve their competitiveness. Target cost management strategy is to continue to reduce costs enterprise to create an internal and external environment, reduce business costs from the value chain and other sectors, in order to consolidate the enterprise long-term competitive advantage, strengthen the strategic position of the firm.In order to increase the value of this paper, Based on strategic cost management value chain to China Southern Airlines as a sample, through internal and external value chain analysis, according to the internal value chain, external analysis, strategic positioning analysis, development of competitive strategy of China Southern Airlines to provide evidence; then combined with competitive strategies, identify cost drivers and application control, in order to achieve strategic cost management to enhance, and then create and maintain a competitive advantage China Southern Airlines.