Research On Strategic Cost Management Of Vipshop Based On The Value Chain

In December 2015,the number of China's Internet users reached 688 million,a total of 39.51 million new Internet users in the year,the Internet penetration rate of 50.3%.The popularity of the internet to increase the number of internet users,which plays an inportant role on China's e-commence development.Today,the e-commerce become matures,with“taobao.com” and “Tmall” and “Jingdong” and “vip.com” and "suning.com" led by business groups is changing people's life.E-commerce industry has long been considered the "burn" of the industry,but behind this “burn” is to foster consumer habits,build and improve the continuous investment platform.Consumer habits,internet users increased by charging service fees related to vendor revenue.However,the technical barriers in online shopping industry are not high,new entrants increase make the competition becoming increasingly fierce.Unable to control costs,while revenue is affected,resulting in a lot of electricity supplier fallen.In the new environment,companies need to find their own innovation,relying on strategic management,strategic objective,the development of cost management measures to control costs,so that the core competitiveness becomes a source of income.Vip.com to be the N0.1 of electronic business in vertical type,not only relying on its unique sales model "limited sale and flash sales",also includes in-depth analysis of its upstream and downstream value chain through inventory management,build a national logistics system,to establish strategic partnerships with suppliers and improve internal processes and other ways to improve their profitability and brand influence.In this paper,through the value chain analysis to understand the link in the value chain,and to analyze its costs composition.In addition,put forward the prosal to the development of enterprises understand the strategic cost management measures.