Research On The Strategic Cost Management Of Xiaomi Value Chain

With the further strengthening of the trend of economic globalization,the enterprise development opportunities and challenges coexist.High-tech enterprises are at the forefront of The Times,undoubtedly facing huge competitive pressure,so how to seize the opportunity to develop and expand their own competitive advantages has become the most concerned issue.In order to obtain obvious competitive advantages,enterprises should start from two aspects,namely,low cost and characteristic products.The traditional cost management system has been unable to help enterprises solve the problems caused by the ever-changing market environment,so the strategic cost management has become particularly important.As a new management model,the strategic cost management the enterprise cost management and the strategic environment of organic combine,from a strategic perspective to find the source of the cost driver,and on this basis,combining the analysis of the value chain perspective,chain upstream and downstream activities to explore from the enterprise can get more efficient cost control of the key factors.The organic combination of value chain and strategic cost management can not only find out the key that affects the strategic cost control of enterprises from the source,but also avoid being separated from the actual production and operation activities of enterprises because of blindly focusing on strategy.The combination of the two can help enterprises find their own advantages,improve the shortcomings,so as to occupy a stable position in the competitive market.The strategic cost management based on the value chain has been widely used in the world famous enterprises.Many enterprises try to improve the business process by analyzing the value chain and effectively control the cost by means of strategic cost management.Xiaomi technology co.,ltd.is a highly competitive seed player in the high-tech industry.It has relatively mature experience in the strategic cost management of the value chain.This paper makes an in-depth study on the strategic cost management of Xiaomi by using literature research method,case analysis method and comparative analysis method,and combining the value chain,strategic cost management and other relevant theories.This paper first introduces the basic situation of Xiaomi and its strategic positioning,again according to the internal and external value chain theory to analyze its each link of strategic cost management method,finally through the cost management to apply these methods to get the results of the affirmation,and the problems existing in the cost management plan put forward Suggestions,in order tohelp millet company to improve cost management,and provide reference for other enterprises in the hi-tech industry.