Research On Strategic Cost Management Based On Value Chain

In today’s economic globalization,great changes have taken place at home and abroad.With the rise of trade protectionism,the total export volume of China’s home appliance manufacturing industry to the United States and Japan shows a downward trend,and foreign home appliance enterprises are eroding this part of the market.The increase of labor cost and environmental protection cost in China has led to a sharp increase in the cost of home appliance manufacturing industry.With the emergence of the Internet,the original sales mode has been broken.Relying on the original cost advantage,the era of home appliance manufacturing industry has passed.Now we should stand at the high level of strategy and integrate the value chain into the strategic cost management,from focusing only on the development of the internal environment to focusing on the internal environment The development and change of external environment and the development and strategic response of competitors not only help the home appliance manufacturing industry to adapt to the development of the times,but also help to obtain a more long-term competitive advantage.In order to deal with the new challenges of domestic and foreign environment for the development of home appliance manufacturing industry,Gree Electric takes "endless innovation" as the concept,focuses on independent innovation and development,shapes the world brand,breaks through the limitations of traditional cost management mode,and implements a series of strategic cost management strategies based on value chain.This paper adopts the methods of literature research,quantitative analysis and qualitative analysis,and single case analysis,based on the comprehensive transformation of strategic cost of Zhuhai Gree Electric Co.,Ltd.,introduces the cost management strategy implemented by Gree Electric based on value chain optimization from three perspectives of internal,industry and competitors’ value chain,the research conclusion and enlightenment are obtained.In the process of strategic cost management,the company optimizes or improves the internal value chain management by constructing a technical innovation system based on customer demand,fine cost control,shaping the perfect quality management mode of PQAM,and persisting in the cultivation of talents independently,and thus enhancing the competitive advantage;it also improves the competitive advantage by giving full play to the regional economic advantages through industrial layout,and improving the supply chain to establish an enterprise The industry value chain management is improved by means of industry alliance,digital operation and sales mode transformation.The value chain management of competitors is improved by analyzing the countermeasures made by competitors,broadening overseas market and developing independent brands,strengthening the competitive position,and building a perfect strategic cost management system of value chain,and achieving perfect realization The effective integration of internal and external resources of the enterprise is achieved.Gree Electric appliances have achieved good results under a series of measures,mainly reflected in: light asset model promotes the enhancement of technological innovation ability,changes in sales channels,and improves the competitiveness of products;follows the PQAM perfect quality management mode,strengthens after-sales service,strengthens brand value;establishes online user database,improves supply chain management,reduces information generation The cost of sales and the cost of production are improved,the production efficiency is improved and the cost structure is optimized.According to the implementation effect of Gree Electric appliances,this paper puts forward some suggestions for home appliance enterprises or other similar manufacturing enterprises,in order to improve the cost management mode of manufacturing enterprises and promote their business development.