ZBX Low Margin Business Under The Management Of Background Research Costs

Commercial business strategy and marketing management must follow thechanges of social patterns of consumption. With the economic development andsocial progress, urban and rural living standards both improve significantly，andpeople’s consumption patterns are undergoing profound changes. Currently, manysupermarkets are in the transition to middle and high-end that goods are moresophisticated, environment is more upscale and prices tend to increase. Thepromotion of residents’ consumption capability enhances the expansion of largesupermarket chains except for ZBX. As opposed to the general line of high-endsupermarket chain, ZBX positions in the low-end significantly different.For enterprises, the pursuit of profit is the eternal theme, and profitmaximization is the ultimate goal. Generally, companies can set up an appropriatemargin to maximize profits, and business scale is not always proportional to profit.For example, some small high-tech enterprises can set high profit margins byrelying on technical barriers to maximize profits. But corporate samples of thispaper is a comprehensive shopping mall. Although such enterprises’ goal is tomaximize profits, but constrained by the nature of the enterprise, we must continueto develop new markets, achieve economies of scale expansion to be sustained andstable development. For such enterprises, setting a reasonable profit margin andthe pursuit of profit and scale to seek the right balance become critical.On the problem of margins set, even with the mall-based companies are notthe same. Some malls set a higher profit margin, mainly located in the high-endproduct that although small sales volume, profits are very substantial. Such mallstend to start early, high-profile and large chain management situation. Different from high-end shopping malls that obtain profit by counter rentals and the highpoint deduction, low profit malls approach basically by counter import andproduct positioning in the low-end. Although this can drive the rapid increase insales, but it will greatly increase the cost of management more difficult. Researchin the cost management methods of this state helps to enrich the theory to explorethe relationship between low-margin and low-cost management. Meanwhile, thispaper seeks to do beneficial exploration in the cost management of low-endpositioning theory mall.Currently ZBX company although accumulates a lot of experience in costmanagement, there are still some outstanding issues such as the high cost of fundsbecause of occupation of funds, high marketing costs, the purchase ofprice-oriented, and the management simply in order to reduce costs. In thissituation, if the cost management of ZBX company is not improve, it will bedifficult to support the sustainable and healthy development, especially once youstart a price war, much of the of the current cost management of goods will bemeaningless. Taking ZBX company for the study, the author analyses carefully,studies the market positioning and marketing mode, finds out existing costmanagement issues, and takes some countermeasures. All that helps to design thecost management scheme in the background of low profit margins, but alsoprovides certain experience for the similar enterprises to strengthen costmanagement and achieve sustainable development.The author starts from the the development of the domestic chain stores, andfinds out the existing problems by analyzing the experience of finishing marginstrategy, comparisoning the pros and cons of the different margins and analyzingthe cost management study of the object. In view of the above questions, the paperpresents a conceptual framework of cost management under the background of lowprofit rate, and makes a clear direction to the mall cost management in backgroundof low profit margins by applying research literature, comparative study, the talk visit and chart analysis. Combined with the market environment and regionaldevelopment where the object locates, the paper puts forward the countermeasuresand suggestions mainly from planning and scheduling, formulate measures andsecurity of cost management and such as.