Research On Eastern Airlines Strategic Cost Management Based On Value Chain

Since the reform and opening up,the state has vigorously supported the aviation industry,the number of airlines and the route network have been rapidly expanded,the transportation capacity has been significantly improved,the air transportation industry has achieved rapid development,and has gradually become an important part of market economic activities.The development of the industry can reflect the level of economic development and modernization of a country or region.With the advent of the information age,airlines must continue to improve network technology to adapt to new trends.Compared with other industries in China,the air transport industry has the characteristics of more government control,larger capital investment,higher technical requirements,and larger cost expenditure.To maintain stable development,it is necessary to strictly manage costs.In recent years,national policies have continued to favor low-priced private airlines.These companies have attracted a large number of consumers by virtue of their low-cost air tickets.The case company selected in this article,China Eastern Airlines,is a state-owned airline,facing the internal and external environment.Double pressure,need for strategic cost management to remain competitive in the market.Therefore,the thesis carries out strategic cost management on the basis of the value chain,identifies the non-value-added operations,optimizes the important links in the value chain,and helps enterprises to improve the level of cost management,which has certain practical significance.The thesis adopts literature research method,case analysis method and financial analysis method.Under the guidance of value chain theory,strategic cost management theory and Porter’s competition theory,and on the basis of relevant research results at home and abroad,taking China Eastern Airlines as a case,based on From the perspective of the value chain,conduct strategic environment analysis,strategic positioning analysis and strategic cost driver analysis,and through the analysis of various cost evaluation indicators,research on the strategic cost management based on the value chain of China Eastern Airlines,from the perspective of the external value chain and internal value chain of the enterprise To start with,put forward suggestions on establishing a good relationship with the upstream and downstream of the enterprise,improving the operation and management model,and fine-tuning the cost control,so as to help the enterprise use various resources more effectively and help the enterprise to develop continuously and healthily.It is hoped that by discussing China Eastern’s value chain-based strategic cost management research and suggestions for improvement,it can provide some reference for other companies.