A Case Study Of Strategic Cost Management In The W Real Estate Company

China’s real estate industry has made great contribution to the development of the national economy through the booming development of more than 20 years.Because the real estate industry has strong profitability,many investors actively enter into this industry,and a large number of social resources have been brought together in this industry.However,the real estate industry is bound to give rise to a high risk while bringing about great benefit.For the property development,the high cost of land and the long time from design and construction to completion,leading to the real estate development requiring huge money.Based on the characteristics of real estate,the effect of controlling and management of cost is relative to the survival and development of the real estate development company.At the same time,in order to guide the real estate industry developed normally,the government has taken different measures to comprehensive control the real estate industry.Real estate development companies are facing more and more challenges,and the opportunities are less than the before.Therefore,strategic cost management can affect both the formation of their advantages and the healthy development of real estate industry.This paper focuses on case study.From the second chapter,the paper introduces the theory of strategic cost management.It includes the basic meaning and characteristics of strategic cost management,analysis model,implementation steps,and influence factors.Then,the third chapter begins case introduction.In the third chapter,this article selects the leading real estate company the W real estate company as object of the case analysis,and analyzes the concrete application of strategic cost management of the W real estate company in detail.Under the condition of changing internal and external environment,strategic cost management plays a key role in adjusting management policy in the W real estate company.In contrast to other real estate companies,the W real estate company’s advanced management ideas and methods are the root of the implementation of strategic cost management.The W real estate company can guarantee its ability to adapt to environmental changes,because it controls its cost from the perspective of strategy.Then,the fourth chapter of this article compares the W real estate company’s financial performance and competition status in recent years,finally,some experience and achievements of the W real estate company are summarized.The use of strategic cost management in the W real estate company effectively promotes their competition ability.In terms of the company’s performance,the W real estate company gains good financial performance,improves customers’ satisfaction,strengthens its internal operation ability.In terms of market competition status,the application of strategic cost management not only help the W real estate company win competitive advantage,but also has played a good role in the company’s strategic transformation.At the end of the article,some experience and achievements of the W real estate company are summarized.The aim of the paper is to provide helps and references for other companies.In order to give full play to Strategic cost management’s role,enterprises should do the following aspects.First,paying attention to cost management idea,including the view of cost management,strategic fit,innovative,etc.Second,we should promote the combination of the value chain,enterprise internal and external value chain should be optimized.Third,we should use scientific cost management methods.We should explore more advanced management system constantly with the development of era.For strategic cost management,many scholars have made a lot of research,such as factors influencing strategic cost management,value chain analysis,etc.However,we can find that there are few scholars to integrate all aspects of research by reading a large number of literatures.Therefore,this article will integrate the related research follows certain logic through the case.Through the study of the theoretical framework of strategic cost,with the successful example of the W real estate enterprises,this article analyzes the implementation process of strategic cost management to supply other enterprises to refer.