Research On Strategic Cost Management Of S Metro Group Co.,Ltd.

While China is rapidly advancing the process of urbanization,the demand for transportation is also increasing,and the priority of public transportation has become a very important way to solve the urban traffic problem,and the subway has been paid much attention because of its advantages of large traffic volume,fast running speed,low resource consumption and safe and reliable,so the construction of Metro has ushered in a good opportunity for development However,the investment scale of Metro is very large in the construction period,and there will be a series of problems in the construction process,such as traffic jam,construction difficulties,technical bottleneck and high risk,which greatly limits the development of Metro.From the present point of view,most of China’s subway enterprises use traditional cost management,not strategic relevance,can not provide effective information for the strategic management of enterprises,so in the new environment and situation,how to reduce the cost of subway to enhance the core competitiveness of enterprises has become the main challenge facing Metro Enterprises.As a new cost management mode,strategic cost management is a comprehensive understanding of enterprise cost structure and cost behavior from a strategic height,finding out the factors that cause cost change,and seeking a strategic way to reduce costs in order to obtain long-term competitive advantage through continuous control and improvement.At present,under the condition that the operation and management of rail transit tend to be digitized and intelligent,strategic cost management is an important way to reduce the operation cost of rail transit construction fundamentally.Firstly,through the analysis of the present situation of cost management of S Metro Group Co.,Ltd.,this paper obtains the problems such as the low degree of comprehensive cost management,the high cost of unit operation and the dispersion of cost management.Secondly,this paper mainly from the value chain analysis,strategic positioning analysis,cost driver analysis of the three aspects of S Metro Group Co.,Ltd.to carry out strategic cost management analysis,and then put forward the implementation of strategic cost management related recommendations.Finally,through the strategic positioning analysis,it is concluded that S Metro Group Co.,Ltd.should adopt a combination of cost leading and differentiated competition strategy,through the value chain and cost driver analysis to clarify the focus of strategic cost management and its optimization measures.