The Application Research Of XCMG Cost Management Based On Value Chain

Since the outbreak of the economic crisis, the global economic situation overall decline, affect greatly the development of construction machinery industry. Year on year sales revenue decline and gross margin to further reduce the dual pressures of parallel test, engineering machinery industry enterprises how to in the increasingly vicious competition environment obtain competitive advantage has become the primary concern.With the enterprise and its suppliers, customers and competitors of the increasingly close relationship,the scope of competition is no longer limited in between the company and the company. To maintain and further enhance the core competitiveness of enterprises, companies and their value chain the core business maintained close strategic cooperation, form a unified competition. So, through the internal value chain analysis in-depth understanding of cost management situation of XCMG Group, horizontal value chain analysis leads to the core subject of XCMG Group’s strategic cooperation, vertical value chain convex analysis show the XCMG Group and its main competitors is occupied in the market orientation, products development and other aspects of the differences.The effective value chain analysis can for the enterprise strategy to provide a comprehensive, accurate,and effective cost information, provide the basis for the scientific strategic, the sustainable development of enterprises, enhance competition ability and economic benefit, social benefit, has the very important practical significance. Therefore, this paper based on value chain cost management perspective, through the case analysis, found that XCMG Group existing cost management concept is not popular, cost management method and implementation is not in place, to cost management implementation efforts to control the effect of enough, narrow the scope of cost management problems. And put forward recommendations for the management in the procurement, production, marketing links, with the upstream and downstream establish strategic alliance, obtain competitive advantage of low cost and provides a new idea for enterprises in the process of cost management.