The Effect Analysis Of E-commerce Enterprise Value Chain Cost Management

With the rapid development of the Internet industry in recent years,China's e-commerce industry has risen rapidly and has maintained rapid development.While utilizing current network technology for development,China's e-commerce industry has summarized the experiences and lessons learned from the bursting of the international bubble economy and built its own network information system to integrate logistics,capital flow,and information flow into one.With the increasing level of people's consumption and the advancement of network technology,people have gradually begun to adapt to the convenience and speed brought to life by the Internet.The online shopping platform has gradually improved,coupled with the improvement of various supporting third-party service systems,and online shopping has fully integrated into people's lives.Due to the rapid development of network information technology,the industry environment in which companies are located is also changing.Instead of blindly pursuing individual profit,enterprises start from the value chain and achieve a win-win situation for the enterprises on the value chain.Specifically,corporate development requires the integration of internal and external resources to maximize value.The use and implementation of cost management based on the value chain will help improve cost management capabilities and enhance the company's competitive advantage.Value chain cost management takes the corporate value chain as the direction,plans and manages the enterprise cost from three perspectives: horizontal,vertical and internal.As an e-commerce company,Amazon has accumulated a certain amount of successful experience in value chain cost management.According to the three perspectives of the value chain,Amazon's value chain can be divided into supplier value chain,customer value chain,competitor value chain,and internal value chain.For the supplier value chain,Amazon and its suppliers establish a strategic alliance form a logistics scale effect to reduce warehousing and logistics costs,thereby creating an efficient warehouse management model and achieving the optimal inventory ratio,For the customer value chain,Amazon prepares inventory in advance to predict the individual needs of customers,in order to reduce the cost of out-of-stock and cost of sales.through the online sales platform,it can quickly count the relevant data of customers and greatly reduce the operating costs compared to physical stores.Amazon attaches great importance to service quality and customer feedback,and have established a brand advantage in the same industry.In response to the competitor's value chain,Amazon implemented a diversified pricing strategy,implemented a multi-category business model,and opened up diversified promotion channels,which highlighted the scope of economic benefits and achieved price competitive advantage.For the internal value chain,Amazon focused on optimizing its internal structure and information system,and ultimately achieved a combination of information and business scale operations,and reduced the organization's internal management costs.The biggest difference between Amazon and other e-commerce companies is that Amazon pays more attention to the construction of technology systems,combines advanced technology systems with its own business,and efficiently processes business data through the establishment of information systems.Under the circumstances that logistics has established a strategic alliance,it will convert monomer competition into a collective win-win situation,enhance each other's profitability,and achieve a win-win goal.This article combines academic research with specific cases,summarizes and discusses the related theories of value chain cost management firstly,takes the perspective of horizontal,vertical,and internal perspectives of the corporate value chain as the starting point,and evaluates and summarizes the cost management of the company's value chain.The innovation of this paper is to introduce the value chain theory into the cost management.Starting from the value chain theory,the company will launch a new cost management model.Starting from each value activity of the enterprise,analyze its profitability,and link each value activity to form a value chain to maximize the value of the value chain and ultimately increase the value of the company.In addition,this article uses Amazon as an example to explain the cost management approach adopted by Amazon based on the value chain,and analyzes the effect it generates.For the success of cost management in the value chain,it will provide great learning and reference value to other e-commerce companies.