Enterprise Strategic Cost Control Based On Value Chain:the Case Study Of Gree Electric Appliance

Since China's reform and opening up,the market economy has developed rapidly,and the competition among enterprises is becoming more and more fierce.In order to occupy more market share and obtain greater economic benefits,the competition between enterprises becomes more and more diversified,which makes Chinese enterprises have to carry out more effective scientific management.In the current competitive environment,enterprises must have a strategic sense of survival,growth and development,the use of strategic thinking management.For enterprises especially industrial enterprises,as long as the strategic cost control is good or not,is a magic weapon to win them,if the enterprise can effectively control costs,and even other industry occupy the same market share it gains will also be higher than in the same industry.Strategic management ideas and concepts based on cost control,strategic cost management has been proposed and widely used at the same time,with the widespread use of the value chain in the enterprise,more and more enterprises in the implementation of value chain management,trying to optimize the value chain of the core business process to reduce the cost of organization and management.Therefore,as an important part of the strategic cost control,value chain management should play its role and apply it to the actual cost management process.This paper mainly through the case,is the strategic cost control based on value chain theory is applied to the case analysis of GREE electric,GREE electric appliances how to use the value chain in the strategic cost control,to optimize the allocation of various resources,and find the key cost drivers GREE.Then,through the analysis of these driving factors,it can be pointed out that GREE can control the cost of enterprises by strengthening the motivation.Again,the internal and external environment of GREE scanning,and determine the strategic positioning of GREE,GREE found a suitable development strategy.Finally,this paper makes an evaluation and improvement of the effective implementation of the strategic cost control model.The application of strategic cost management method based on the value chain of GREE electric appliance has certain enlightenment to our country's home appliance industry and other enterprises.To the enterprise,should abandon the traditional method of cost control,from a strategic height,cost control,to recognize the value chain,the cost agent continuously analyzed and continue to control and reduce the cost of enterprises and can maintain a competitive advantage.