Strategic Cost Management Based On The Value Constellation

With the development of society and the arrival of the era of knowledge economy, enterprise specialized division of labor is more and more common. It is not necessary for the enterprise to retain a large number of business activities in its interior, so enterprises began to implement vertical diffusion strategy, namely, the non-core business outsourcing, only core business. Thus, the concept of a series of intermediate organization, such as value galaxy, industrial agglomeration, enterprise group and strategic alliance etc. generated.The value of the galaxy is in a "Star" enterprises as a core enterprise, also including the suppliers, distributors, partners, customers, competitors, "planets" and "satellite" enterprise, star enterprise have high resources and manpower management, other companies use their technical superiority around the "stars" common development of enterprises. They formed a value creation system with a common goal. The value of the galaxy as an intermediate structure between market and enterprise, which means it has crossed the boundary of traditional enterprise, competition between the corresponding original enterprises has gradually been replaced by the competition between the value of the galaxy, and the strategic cost management is enterprise to obtain the competitive advantage of an important way.The traditional strategic cost management is based on the value chain analysis. Meanwhile, the strategic positioning analysis and cost driver analysis are used to analyze the internal value chain, the vertical value chain and the horizontal value chain. The analysis of limitations of the method lies in it from the perspective of a single enterprise of suppliers, vendors, competitors, partners and other stakeholders as cost optimization of environmental factors to consider and cost to the enterprise management to gain competitive advantage. However, the traditional mode of strategic cost management can not adapt to the new values of the galaxy's intermediate organization mode, so the purpose of this paper is to build a suitable value of the galaxy's strategic cost management mode. Firstly, this article has studied the basic characteristics of the value of the galaxy and the influence of the strategic cost management, on this basis, starting from the strategic perspective of the value of the galaxy, in the perspective of the overall proposed the goal of optimization of overall costs, will among enterprises within the galaxy relationship as a strategic cost management focus that promote established between enterprises within the galaxy effective market is way of strategic cost management, in order to construct a suitable value Galaxy organization form of strategic cost management. The innovation of the mode of strategic cost management is to suppliers, competitors, customers, and so on cost management as the analysis object, the cost management from a single enterprise to expand enterprise's cost management, and enlarge the cost management of the scope of time and space.Finally, we use the case of Chint electric value galaxy as the research object, combined advanced strategic cost management with the value of the galaxy that particular form of organization. And make the typical case expand to a general technical method and can be widely used. At last, the article puts forward some specific suggestions.