Research On Strategic Cost Management Of Railway Transport Enterprise

This paper uses both theoretical study and practical method of the enterprise, studies the cost management of railway transport enterprise by strategic level. Aim to establish the cost management system for Chinese enterprises to satisfy the characteristics, improve the competitiveness of the enterprises, and take reliable and competitive advantages in the transportation market.As the economy system gradually establishes and improves in Chinese market, the reform is deepen, transportation in domestic market is showing a multi-layered trend, coupled with the further expansion of the world trade, railway transportation enterprises are facing serious challenges, globalization is fundamentally affecting the process of economic development in the industrial world, bringing huge technical and trade opportunities to underdeveloped countries and becoming the highlight of world economic growth, it is serious threat to developing countries. China's railway transportation enterprises must firmly grasp the opportunity to fight actively and take a place in the competition, abtain survival and development opportunities. Strategic Cost Management analyzes the cost factors and the changing trend, study business costs from the strategic perspective, and take effective way to control and improve costs, make the enterprises survived and developed in the fierce competitive market. Nowadays, the technology of Chinese railway transportation developed quickly, gradually incline to digital and intelligent, strategic cost management is an effective way to reduce the cost of the railway transportation.The theory framework of strategic cost management has been elaborated, the paper deeply discusses the theories and methods of environment, objectives, characteristics and the procedures, based on the analysis in internal and external environment to Datong-Qinhuangdao Railway Company, dividing the value chain of the company, finding out the unreasonable cost assignment link by improving the value chain to those key operational activities, determine the overall strategy of enterprise. In order to achieve corporation's strategic objectives, further clarifying focus and enterprise's goal of cost management, making cost management strategy correct and effective. The paper uses the tools of the value chain, strategic positioning, cost drivers'analysis and so on, comprehensively analyzes the cost of the railway transportation enterprises, and points out how to improve competitiveness in the transportation market. and gives improved measures and recommendations for cost management. Strive to create a sustained business environment to reduce costs and maintain competitive advantages, keeping the profitable ability in the long run.