Research On Strategic Cost Management Of Xiaomi From The Perspective Of Value Chain

The arrival of 5G era has brought new opportunities and challenges to the mobile phone,smart hardware and other industries.The emergence of various new technologies,such as big data and cloud computing,is also constantly driving the transformation and development of enterprises.With the rapid change of Internet technology,the increase of consumer demand and the personalized and diversified consumer demand also make science and technology innovation-oriented enterprise face problems such as short product life cycles,rapid variety changes,large resource investment and high risks.The cost management is required to be more refined,real-time and dynamic in the digital era.Under the new environment and situation,how to improve the core competitiveness of enterprises by reducing costs has become the main challenge.Therefore,the strategic cost management theory based on improving the core competitiveness and comprehensive benefits is accepted.Among them,value chain analysis,as the core element of strategic cost management,not only analyzes the business activities of enterprises from multiple dimensions such as internal and external,and expands the scope of cost management,but also enable companies to realize the interdependence and coordinated development of the entire value chain of the upstream and downstream products in the process of finding value,creating value,and delivering value.With the gradual development of enterprise operation management towards digitalization and intelligence,value chain strategic cost management has become an important way to fundamentally reduce enterprise operating costs.This article mainly studies the cost management of science and technology innovation-oriented enterprises in the era of mobile Internet,so the typical representative science and technology innovation-oriented enterprise--Xiaomi is selected as the case study object.Through literature research,case analysis,analytic hierarchy process and other methods,this paper firstly analyzes the current situation of the cost management of Xiaomi,finds out the problems of its cost management,and then discusses the necessity of the implementation of the value chain strategic cost management of Xiaomi.Secondly,based on the value chain theory,this article analyzes Xiaomi's main content of strategic cost management and identifies its non-value-added activities such as insufficient research and design,inventory backlog,material waste and low after-sales efficiency in the enterprise value chain.The four strategic cost driving factors of technology,integration level,employee participation,and enterprise scale were screened out,and the competitive strategic positioning of the combination of enterprise cost leadership and differentiation strategy was determined;Finally,this article proposes relevant optimization strategies for companies from improving corporate research and design efficiency,optimizing corporate procurement management,and integrating upstream and downstream supply chains.To strengthen the cost management system,build an information system platform,increase employee participation,and establish a strategic performance indicator evaluation system as safeguard measures to improve the efficiency of Xiaomi's cost management and promote the improvement of Xiaomi's comprehensive competitiveness.This paper also provides references for other companies in the same industry to implement value chain-based strategic cost management.