Strategic Cost Management of Low Cost Airlines in China: Value chain perspective
China's air transport industry has grown dramatically in recent years. In general, industries with fast-growing demand are highly profitable. However, this is not the case with airlines, which usually less profitable (Doganis 2010). In order to improve their profitability, airlines need to impr...
| Main Author: | |
|---|---|
| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2019
|
| Online Access: | https://eprints.nottingham.ac.uk/57775/ |
| _version_ | 1848799501029998592 |
|---|---|
| author | Zhu, Kai |
| author_facet | Zhu, Kai |
| author_sort | Zhu, Kai |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | China's air transport industry has grown dramatically in recent years. In general, industries with fast-growing demand are highly profitable. However, this is not the case with airlines, which usually less profitable (Doganis 2010). In order to improve their profitability, airlines need to improve their current cost management system. Strategic cost management is an effective method, which is conducive to forming a competitive advantage (Ellerand and Moreira 2014).
As the pioneer of low-cost Chinese airlines, the cost management model of Spring Airlines is representative. By studying the practical application of strategic cost management based on the value chain in Spring Airlines, the following conclusions are made: 1) The role of the value chain is significant, and the unit cost of Spring Airlines is at a lower level. 2) Low-cost airlines can establish cooperative relationships with upstream and downstream enterprises, optimise internal value chains, and gain strategic alliances with competitors to effectively control costs and gain competitive advantages.
Keywords: Value Chain; Strategic cost management; Competitive advantage; Airlines |
| first_indexed | 2025-11-14T20:36:40Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-57775 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:36:40Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-577752022-12-01T11:54:17Z https://eprints.nottingham.ac.uk/57775/ Strategic Cost Management of Low Cost Airlines in China: Value chain perspective Zhu, Kai China's air transport industry has grown dramatically in recent years. In general, industries with fast-growing demand are highly profitable. However, this is not the case with airlines, which usually less profitable (Doganis 2010). In order to improve their profitability, airlines need to improve their current cost management system. Strategic cost management is an effective method, which is conducive to forming a competitive advantage (Ellerand and Moreira 2014). As the pioneer of low-cost Chinese airlines, the cost management model of Spring Airlines is representative. By studying the practical application of strategic cost management based on the value chain in Spring Airlines, the following conclusions are made: 1) The role of the value chain is significant, and the unit cost of Spring Airlines is at a lower level. 2) Low-cost airlines can establish cooperative relationships with upstream and downstream enterprises, optimise internal value chains, and gain strategic alliances with competitors to effectively control costs and gain competitive advantages. Keywords: Value Chain; Strategic cost management; Competitive advantage; Airlines 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57775/1/14338497%20N14170Strategic%20Cost%20Management%20of%20Low%20Cost%20Airlines%20in%20China%20Value%20chain%20perspective.pdf Zhu, Kai (2019) Strategic Cost Management of Low Cost Airlines in China: Value chain perspective. [Dissertation (University of Nottingham only)] |
| spellingShingle | Zhu, Kai Strategic Cost Management of Low Cost Airlines in China: Value chain perspective |
| title | Strategic Cost Management of Low Cost Airlines in China: Value chain perspective |
| title_full | Strategic Cost Management of Low Cost Airlines in China: Value chain perspective |
| title_fullStr | Strategic Cost Management of Low Cost Airlines in China: Value chain perspective |
| title_full_unstemmed | Strategic Cost Management of Low Cost Airlines in China: Value chain perspective |
| title_short | Strategic Cost Management of Low Cost Airlines in China: Value chain perspective |
| title_sort | strategic cost management of low cost airlines in china: value chain perspective |
| url | https://eprints.nottingham.ac.uk/57775/ |