Applicaton Of Value Chain Analysis In Enterprise Strategic Cost Management

With the constant development of our economy and the increasingly complex and intense competition environment, the scope of cost management has extended from internal of enterprise to the external. The traditional cost management methods are gradually replaced by the advanced methods. Thus, some enterprises try to improve their cost management methods to establish long-term strategic thinking, but because of the lack of guidance, some problems have existed in exploring ways of developing a practice. The majority of enterprises still maintains traditional cost management methods and often fails in the intense competition. Researching and developing strategic cost management have great practical significance in innovative ways and means of our enterprise cost management.As a hub of strategic cost management, value chain analysis aims to reduce costs while finding ways to improve enterprise competitiveness. The quantitative research aimed to optimize the value chain, control key value chain and enhance enterprise competitiveness."Theoretical Research Value Related to Chain Analysis"is the first part of this article, which study the theory outlined in the value chain, the type of business, its associated value chain and value chain analysis. This part is the theoretical basis of this article.Under new business outlook, the operation process of enterprises is a process of creating process, in this process, all activities link to each other and forms a logic chain, which is called enterprise value chain. Thus, from a strategic management perspective, the starting point of enterprise cost management is just value chain analysis. Then the article discussed the contents and links. Value chain analysis includes analysis of the internal value chain, value chain analysis of horizontal and vertical value chain analysis. These three types of value chain analysis are interdependent and mutual contacts so as to constitute an organic...