Research On Development Strategy Of Cargo Business Of Shandong Airlines Qingdao Branch

The acceleration of global economic integration led to the rapid development ofscience and technology since entering the21STcentury. It also makes the connectionbetween countries and countries more closely together, trade more frequently, aircargo business, especially in domestic air cargo business boomed accordingly.Although the financial crisis of2007spread in the whole world, the air cargo marketis still hot especially the Qingdao region. More and more airline companies are settingnew international routes. There are some Express companies manage to opendomestic airline routes to contend with airline company like Shandong airlinesQingdao Branch.Shandong airlines Qingdao branch has the most flights in Qingdao area. But inthe aspect of international cargo freight, there is still obvious gap between Shandongairlines Qingdao Branch and major international airlines such as China Easternairlines. And it is faced with the threat of China Eastern and China southern airlineson domestic freight every moment and hour. The income also is not as much asShandong airlines Jinan branch. How to make use of the various advantages andconvenience and predict freight development trend in the future to set the freighttransportation development strategy formulation conformed to the own situation. Thatis the important task which Shandong airlines Qingdao branch have to face. Thispaper based on the framework of enterprise development strategy theory summed upthe experiences and lessons, problems and reasons by statistical analysis and sum-upmethod. It set the Shandong airlines Qingdao branch freight development strategythrough the analysis which is Porter’s five forces model and SWOT. We hope itbecome a reference for other branches of Shandong airlines.This paper is divided into six chapters. The first chapter is the introduction, introducing research background, significance, method and framework. The secondchapter is overview of relevant theories, including PEST, Porter’s five forces model,SWOT and enterprise development strategy theory. The third chapter introduced thecondition of Cargo business of Shandong airlines Qingdao branch, including the flightroutes, cargo scale and its structure. The fourth chapter mainly analyzes the macroenvironment, the microenvironment of Shandong airlines Qingdao branch. In addition,this chapter introduced the status of the Qingdao freight market and the internalconditions of Shandong airlines Qingdao branch. The macro environment includespolitical, economic, social, cultural and technological environment. The microenvironmental analyses from the customer demand, suppliers, competitors, substituteexisting and potential competitors and so on. The internal conditions analyses fromthe perspective of the freight system, mode of sales, operating mode, and humanresources aspects and using the SWOT model carried on the thorough summary. Thefifth chapter is to set the Shandong airlines Qingdao branch freight developmentstrategy. Including set the freight guiding ideology, basic principles and internal andexternal goal. The sixth chapter is elaborated how to implement the freight strategy ofShandong airlines Qingdao branch as well as the implementation steps and at eachstage of the goal. In the implementation of the strategy proposed strategic alliance, setup professional freight forwarding company, strengthen infrastructure constructionand the cultivation of human resources strategy and so on.