Cost management activities related to the business of each and everyone, is one of the basic activities of the enterprise management. With the changing times and market competition is becoming increasingly fierce, companies pay more attention to how to get a long-term competitive advantage, strategic cost management and modern thinking in line with this objective. Strategic cost management is based on the value chain and cost drivers, throughout the entire value chain to obtain a more comprehensive strategy cost information. In this paper, the use of case study method, the homogenization problem for Chinese dairy enterprises are facing serious, highlighting the importance of cost management background, the combination of Yili Industrial Group Co., Ltd.(hereinafter referred to as the Erie AG) in specific circumstances, to analyze how its ensuring the quality of cost-efficient case management, so as to let other dairy companies to learn.This paper first describes the background and significance of research related to domestic and foreign research situation of the sort, and then on the theory that the introduction of strategic cost management, value chain analysis and a clear strategic cost analysis under the Strategic Cost Management theory, and further understand the cost drivers based on value chain analysis under further explore the strategic cost drivers, including:structural cost drivers and implementation of cost drivers. Mainly under the control of the value chain cost analysis, highlighting the strategic analysis of cost drivers.Secondly, combined with the current development of the dairy industry, in-depth analysis of the cost drivers of Chinese dairy industry, from a strategic point of view of cost drivers, including the scale, technology, range, contact, total quality management, complexity and labor inputs. Specifically, the expansion of the scale dairy enterprises to expand production of the inevitable choice, how to take advantage of economies of scale to reduce costs is to focus on business needs, and technological innovation is to maintain the competitive advantage of strong backing, contact range would require companies to do to the value chain upstream and downstream enterprises to establish good relations of cooperation and win-win, if conditions permit, it will be the integration of the value chain enterprises to internalize external costs, further strengthened the company’s cost advantage, quality is stable development of the dairy industry important part of others, such as the complexity and labor inputs, also need enterprises to focus on cost control. The next case study, select the industry’s leading enterprise Erie AG introduced, in which the first of its internal and external value chain to do a detailed analysis,based on this, the focus expounded its cost drivers, specifically:firm size, technology, logistics and other marketing aspects, through its effective cost management measures, summarized its successes, learn from the other dairy companies, according to the final results of theoretical analysis and case studies to Chinese other dairy enterprises effective cost management put forward reasonable suggestions.