Research On The Cost Control Of H Airline Based On Competitive Strategy

In recent years,China’s air transport industry has benefited from the rapid development of the tourism industry and the logistics industry.It has also ushered in tremendous opportunities,and various indicators have grown rapidly.In 2018,the total turnover of civil aviation transportation industry reached 120.64 billion tons of kilometers,and passenger traffic reached 6.1.The number of people has increased by 11.4% and 10.9% year-on-year,ranking second in the world for 14 consecutive years.Although the market demand in the civil aviation industry is strong,it is still that the three major airlines occupy most of the market share.Private airlines want to survive and develop in the fierce competition.They should formulate a clear competition strategy based on their internal and external conditions.Under the strategic direction,we will raise the level of cost control and strive to strengthen our cost control ability while maintaining our competitive advantage,so as to win more markets.Based on the collection of literature and field research,this paper uses case analysis method to target H airlines,combined with the internal and external environment and cost control status of H airlines,to explore its cost control under the competitive strategy.Optimization.Based on the internal and external environment of H Airlines,the paper uses SWOT analysis to conduct strategic positioning analysis,and determines the competition strategy of H Airlines: the combination of product differentiation and low-cost operation,and proposes the cost of H airline based on competitive strategy.The three directions of control:(1)conducting business activities centered on low operating costs;(2)continuously providing differentiated route products and services,establishing competitive advantages in the feeder market;and(3)exploring areas other than air transportation business,Increase new profit growth points.At the same time,the paper starts from the five aspects of procurement,development,sales,operation and after-sales,identifies key activities and cost drivers,finds that H airline’s cost control has a series of problems,and proposes H airline’s cost control optimization based on competitive strategy.Strategy and safeguards to optimize H’s cost control while maintaining its long-term competitive advantage.The paper closely combines the actual situation of H Airlines with the current development trend of big data and informationization,optimizes cost control from the perspective of competitive strategy combining product differentiation and low cost operation,and proposes specific strategies for each link of the company’s operations.The overall cost control of H Airlines provides a practical and feasible solution,which can effectively improve the cost control level of H airlines,and has certain reference and reference value for the cost control of other private airlines.