Grid Enterprises In Strategic Cost Management Based On Value Chain

During the modern economic environment, the competition of enterprise is farbeyond the single competition productivity. More elements like supplier, customer andbusiness information had been take into the consideration of business decisions. Forstrategic cost management theory, this kind of decision making method is capable in themulti-eleent environment to achieve the core competitiveness for the user. In Chna,strategic cost management theory has been widely accepted by most of enterprises tosearching for the future development direction. As a giant state-owned enterprise, StateGrid Corporation of China controls the electricity distribution of whole nation. Theefficiency of State Grid will directly influence the health of the China economy. AlthoughState Grid still remains a strong market position, the fierce competition in themarket-oriented economy force State Grid keeps an awareness of unexpected developmentto push the research process of SCM. This thesis is based on the view point of value chain,to provide theoretical reference to State Grid by analyzing its current SCM system.This thesis will using the case of WT power supplier. Combine with thecharacteristics of utility industry, the author will collecting the remaining problems of thecompany and translating the business links into the value chain links. The potential valueof every link could fully explored. The company’s internal value chain, industrial valuechain and rival value chain will be analyzed systematically to achieve the study aims.Basedon the research results, this thesis will providing a suitable SCM system for the company.Meanwhile, the author had present the strategic alliance system of value chain and itsmaintaining system.