The Research On Strategic Cost Management Of S Airlines Based On Value Chain

The transportation industry is the lifeblood of my country’s economy,and the civil aviation transportation industry is a symbol of the country’s international status.In recent years,due to the rise of the high-speed rail industry and market competition from foreign airlines,my country’s civil aviation transportation industry has faced considerable challenges.In order to establish its own competitive advantage in the fierce competition and expand its market share,the civil aviation industry needs to make efforts in cost control.The promulgation of the "Implementation Opinions on Coordinating and Promoting Civil Aviation Cost Reduction Work" in 2019 provides a policy guarantee for the urgency of civil aviation transportation companies to reduce the cost burden.Relying on a good policy environment,civil aviation companies still need to start from their own and fundamentally reduce costs.Based on the explanation of related concepts and theories,this paper adopts case analysis method,takes S Airlines as the specific research object,analyzes its operating characteristics,cost status and cost composition,and analyzes the company from a strategic and technical level.Strategically position and give corresponding adjustment suggestions.For cost control and management,the analysis method of the value chain has always been a research hotspot.This article uses the value chain analysis method,combined with the financial statement data of the S company in the past three years,to identify and disassemble the composition of its internal and external value chains,analyze the application of each link of its strategic cost management,and evaluate the S airline strategy based on this Effectiveness of specific implementation results of cost management.The full text takes S Airlines as the research object,which is effective in the field of cost control,combined with the comparative analysis of full-service airlines and low-cost airlines in the same industry,summarizes the successful experience of S Airlines,and draws three conclusions:(1)It is necessary to use the value chain to carry out strategic cost management for the civil aviation transportation industry.(2)S Airline’s strategic cost management has achieved results,which can be used as a reference for other companies in the same industry.(3)On the basis of using external value chain cost management,aviation companies must integrate more internal value chains to find more profit growth points within the company.