Research On Strategic Cost Management Based On Value Chain

In the new situation, large enterprises generally make corporate strategy combining with the internal cost management strategy to implement strategic cost management. Value chain analysis is one of the tools of strategic cost management and value chain theory put forwards three kinds of competitive strategies of enterprises: cost leadership strategy, differentiation strategy and the target concentration strategy. The core of competition strategy is gaining competition advantages, including cost advantage, speed advantage, advantages of mobility, focus advantage and value added advantage.Therefore, on the premise of meeting the demand of competitive strategy, value chain analysis can provide the method to control and reduce cost in order to maintain competitive advantages and meet the company's strategic cost management.The theory of this paper is mainly divided into two parts: first, elaborate the strategic cost management and value chain theory. Then from the aspect of the internal value chain, horizontal value chain and vertical value chain, describe how to conduct strategic cost management from the perspective of value chain. And this part learns methods from lean production, total quality management and strategic alliance to optimize the value chain structure of enterprises and provide fresh ideas for the construction of strategic cost management.The case of this paper is mainly divided into three parts: firstly, describe YOUNGOR company's competitive strategy and core competitiveness. From the perspective of internal value chain, horizontal value chain and vertical value chain, it analyses how YOUNGOR uses the value chain to enhance competitiveness and reduce cost, namely the construction of strategic cost management of enterprises; secondly, combined with theoretical knowledge, still from internal value chain, horizontal value chain and vertical value chain, it proposes suggestions about strategic cost management to optimize the value chain of YOUNGOR; finally, with the changing technological and economic environment, dynamically put forwards further suggestions about strategic cost management of YOUNGOR based on the value chain.At the end of this paper, it makes a summary and points out deficiencies of this paper with the expectation that it could provide some help to other enterprises and those engaged in related theoretical analysis of peers.