The Research On Strategic Cost Management Of China Southern Airlines

With the rapid development of global economy,the competitive environment faced by firms will become more intense.How to win in the increasingly fierce competition environment,which has become the enterprise managers first thought.Business is like a stream,not to advance is to go back.Therefore,if enterprises want to win the competitive advantage,they should enhance the diversified of the product and the service or reduce the cost.Cost management of enterprise needs to focus on internal cost management,at same time have to attach importance to the connection between the enterprise and the surroundings,then to administrate the enterprise from a strategic height.Strategic cost management is a kind of adaptive change of the traditional cost management.It identifies cost drivers from the sources of cost,and manages costs from the value chain.The way can help enterprise to implement and build the better competition strategy,at same time to help enterprises to gain lasting competitive advantage.Airlines between home and abroad come in aviation market,and try to divide a piece of cake.The pressure of the industry competition become growing.Aviation transportation industry is high input,high risk and low return.China southern airlines have the characteristics of typical domestic civil aviation transportation industry,and the analysis of strategic cost management has decided practical meaning.With the widespread use of SHANK Theory and the present cost management circumstance of China southern airlines,the paper take full advantage of the analytical tools of SHANK Theory,such as value chain,strategic positioning and strategic cost drivers,to study how to control the strategic cost management of China southern airlines.First,the paper introduces the whole situation of China southern airlines and its cost structure and characteristics,analysis its cost management present situation.Secondly,analyse the value chain from enterprise internal value chain,industry value chain and competitor value chain to discover the value-added links.Then through strategic SOWT analysis,clearly define the positioning of China southern airlines in the competitive environment,and identify strategic cost structural dynamics and the execution agent.Finally,according to the above analysis,this paper offer two aspects suggestion of China southern airlines implementation of strategic cost management,including the specific recommendations and safeguard measures.All in all,this article through to the China southern airlines strategic cost management research,expect to make a contribution to the China southern airlines to obtain long-term competitive advantage.