Value Chain In Cost Leadership Advantage Strategies Of Manufacturing Industry

The cost advantage is emphasized by every company. The cost leadership advantage strategies not only bring the advantage of price, but also, above all it optimize the manage system, help manager choose optimal strategy and advance the progress of technology to get the aim of high efficiency in the end. In another words, there is a value chain which support the leadership of price. We must optimize every part of the chain to get the max cost advantage. Manage the value chain is another method of cost management that unit the various department to get the low total cost. It is different to target management.The Xiangfan factory of DPCA is a typical manufacturing industry factory. In the article, we analyze the value chain of the factory, use modern control theory to design the cost control system. We control direct and indirect activities cost by using the cost control system theory and we get a good achievement.