Research On Competitive Strategy Of Staeco

Since 2008, the global financial crisis has brought the disaster to the world economy. The civil aviation industry is one of the vanes for economy developing, it had already been greatly affected in the first phase, and as the result, all the world aviation magnate reported huge loss in 2008. For Asia Pacific and China, the previous high developing speed was also temporarily encumbered by the cold world's environment, so does the local civil aviation industry. Looking into China, the top three airlines reported huge net loss, which makes the aviation transportation market extreme cruel. The civil aviation aircraft maintenance industry, as the extend business, will be affected latterly in a short time and fall into deep winter by the end of 2009. In Asia Pacific and China, there are many aircraft maintenance companies were established with the civil aviation industry boosting up during the last period. The large surplus aircraft maintenance capability will led the further drastic competition. But at the same time, a new market is growing because the airlines of developed countries are outsourcing their maintenance to cut the cost. Therefore, there are challenges and opportunities for the small & medium size aircraft maintenance companies like STAECO. This paper analyzes the internal and external environment of STAECO under the guidance of strategic management theory. The China domestic, Asia and other area's aircraft maintenance market, capabilities were investigated in accordance with the competition strategic theory, the STAECO internal advantage and disadvantage element were detected by the value chain theory. The SWOT analysis leads to the conclusion of cost leadership strategy and the low cost implemental process is introduced to keep STAECO competition advantage in the near future aircraft maintenance market.