By external and internal analysis as well as SWOT analysis, the report points out the strength and weakness of JAL, analyses the opportunities and threats of JAL, and puts forward the three key strategic issues confronted by JAL, i.e, financial crisis, lack of capital, overdue liabilities and the inability to maintain sustainable development; the decrease in attendance due to external factors such as economic crisis and security issues, etc; redundant organization structure, low efficiency in operation, high human resource cost, all of which lead to heavy burden on the JAL. By Ansoff Matrix analysis, the report puts forward the three strategic options faced by JAL: market penetration, market development and diversification. By comparative analysis, the report indicates the adoption of market penetration strategy would be the optimal choice for JAL and there are two issues to be resolved if JAL adopts market penetration strategy