Research On Strategic Cost Management Of Midea Group Based On Value Network

With the rapid development of Internet economy and big data technology,especially the rise of "Internet +",the relationship between enterprises has become closer,and the competition among enterprises has become the competition based on the resources of the relationship between enterprises.Under the market economy condition each kind of demand constant change,promoted the enterprise business model innovation.The value network model generated by the Internet economy can make modern enterprises avoid forming an information island and form a good competitive and cooperative relationship with enterprises in the network.The continuous integration of social relations and market competition has promoted the development of enterprise value network,which is a network structure with core enterprises as the center,and the mode of enterprise value creation has gradually changed from a linear structure to a network structure.Therefore,strategic cost management based on value network is the future development direction of enterprise strategic management.Firstly,this paper expounds the theoretical origin and development process of value network and strategic cost management,analyzes the applicability of value network strategic cost management in the current market environment,and proves the advantages of value network strategic cost management in the current market competition,which can create better value for enterprises.Second,select midea group as a case enterprise.As a leader in the application of value network in home appliance industry,Midea group also has advanced enterprise development strategy and cost management concept.The case study analyzes the strategic environment,organizational resources and functional structure of Midea group,which is the basis for the implementation of the strategic cost management of the group value network.Then the structure of the value network of Midea group is analyzed to understand its operation mechanism.Furthermore,the paper further analyzes the impact path of strategic cost management of value network,and finds that it can optimize the cost structure of enterprises and promote the operation efficiency of enterprises in all aspects.Finally,based on the achievement experience of the strategic cost management based on the value network of Midea group,this paper summarizes the valuable enlightenment for other enterprises to implement the strategic cost management based on the value network.