Value Chain Management In The Airline Cost Management Applications

Cost management is an important part of enterprise's management, because it influences the operating decision-making and developing stratagem directly. The CEO is looking for the methods by those can decrease cost, increase the economic benefit and achieve the competitive advantage. The value chain theory provides a new thought and method for enterprise's cost management. The scientific cost management is the organism of the value chain management and cost management. It not only can definite the relationships between the different value activities, but also can change the enterprise's cost by identifying and changing the inner value chain. The method of value chain can overcome the shortages of the traditional cost management and provide more information about the cost or benefit of value chain for the CEO. It can control and decrease the enterprise's cost by looking for some focus points of cost. Besides, through the analysis of industrial value chain, the CEO can find another method of decreasing cost. Moreover, through the analysis of competitive opponents, the CEO can find the cost difference between itself and its competitive opponents, and it can set down the right competitive policies to win market. In a word, the organism of value chain and cost management can help to decrease cost, optimize the flow of operation and win the advantage of competition.The thesis includes four parts:In the first part, it discusses its development and content of value chain, its relationships between systems and its use of value chain in overseas etc.The theory of value chain was put forward by Michael·Porter, an American scholar. In one of his books, The Advantage of Competition (1985), he introduced the conception of value chain. He thought that the...