Shenzhen Airlines Competitive Differentiation Strategy

Nowadays , competition between enterprises is dominated by "Strategic Management". Confronted with dynamic and intense competitions, it is urgent that Shenzhen Airlines Co. Ltd. (Abbre. SZA) locate its own postion correctly, to strengthen unique core competence, and thereof to creat continuous competitive advantage. It is surpassing existing competition and constituting differential position that is not only meaningful for the continuous development of SZA but also incentive to the restructure and upgrade of the domestic aviation transportation industry. On the basis of gathering indepth domestic and global air transportation industry information, the dissertation deems that SZA should make full use of its human resource advantage and innovation capability to select and implement differentiation competitive strategy, after systematic analysis by means of basic theory and tool of strategic management. The solution to differentiation competitive strategy implementation has also been offered, as well as the method of strategy risk management.The dissertation consists.of 7 components. The first introduces a discussion of theories, logic, and analytical methods employed throughout. The second component explains the concepts of air transportation industry, competitive strategy, and differential, and thereafter proceeding on to a brief overview of the domestic news industry. The third element utilizes PESTEL to scan the strategic environment, combining with the analysis of the value chain analysis, five-forces framework, industry life cycle, and strategic group. The fourth section looks closely into SZA's internal resources and competencies and the expectation of the interior and extertior stakeholder. The fifth component employs SWOT and critical success factors analysis for a more complete perspective and proposes differential competitive strategy tailored to the realities of SZA. The sixth part provides an overview of strategy implementation moves.and therein strategy control system and strategy risk management. Finally, the thesis concludes with a discussion of policy suggestions and potential future research directions.The unique contribution of this dissertation lies in three aspects. Firstly, the dissertation explicitly states that the domestic aviation transportation market structure is of oligopolistic nature and the industry is between the middle and final terms of growth stage in life cycle, and identifies the most influential factor in competitive environment. Secondly, VRIO framework was systematically applied to spot the unique resource and the core competency of a given airlines, which are human resource and innovation ability respectively. Thirdly, the dissertation strengthens the SZA's selection of differentiation competitive strategy, together with suggestions on how to execute it. These suggestions and opinions have positive effects on the enhancement of china airlines' competitiveness. The deficiency that lies in this dissertation is resulted from the difficulty of coming up with more elaborate strategy, which is caused by the obsque of industry and company data.