Eastern Airlines Competitive Strategy

The aim of this thesis is to reach a conclusion that the china eastern airlines (CEA) should make innovation to adapt to the current situation of the civil aviation which is changing and developing rapidly. The conclusion of this thesis is reached in the light of the related theories including mainly the horizontal strategy and differentiation strategy.At first of the thesis the history of the eastern airlines, its present situation, and the history of China civil aviation are briefly accounted.The following focuses on the prevailing strategies the other airline companies employ. A conclusion is reached based on the analysis of five forces that the strategies the airline companies adopt in the present situation tend to be identical. Four strategies are discussed in the process of analyzing the present situation of the domestic and foreign airline companies, namely, cost leadership strategy,differentiation strategy,focus strategy. The present management situation also shows that the location of the airport has close relation with its commercial effect.The analysis of the SWOT of the CEA shows that CEA lacks superiority and decisive competitiveness, and is apt to be emulated by other companies. The main idea, the aim, the focus and the steps of the eastern airline strategy is based on the preceding analysis.The key point of this thesis is the eastern airline strategy. Firstly points out that CEA should adopt differentiation strategy. The employment of this strategy should adhere to the main idea of differentiation strategy with the stress laid on centralized management and decentralized implement.The major part is the analysis of the incorporation of the middle and small airports and moderate monopoly. The analysis of the possibility, the feasibility shows that the employment of such a strategy has such advantages as stimulating the innovation of the policy, improving the commercial state, but also indicates the accompanying cultural conflict.It is also pointed out in this chapter that the adoption of such a strategy, namely the incorporation of the airport into the airline company is basically market-oriented, and intune with the economic law. Therefore, it can enforce the competitiveness and anti-risk ability of the airlines.Several problems worthy paying attention to in the process of developing and adopting the strategy are related and discussed in the last part of the thesis, and the relevant transformation of the organization structure is further explored.