Research On Cost Control Of Midea Group Based On Value Chain Theory

China’s home appliance industry has been developing since 1949.From the "old three items" under the background of planned economy,to the marketization after reform and opening up,and then to the industrial integration in the new era,China’s home appliance industry is moving forward in twists and turns.So far,the system of China’s home appliance industry has become increasingly mature,and home appliance products have gradually stepped out of the country and entered the world due to good reputation.However,with the deepening of reform and opening up,the continuous improvement of the market economic system and the increasingly fierce market competition,the development space that the traditional enterprise cost management model can release for home appliance enterprises is becoming more and more limited.The traditional era of exchanging cheap labor for profits and benefits of enterprises is also gone.The cost management mode based on the value chain has found a breakthrough for the transformation and innovation of enterprises,looking for new value,and provides a new idea of cost management and value creation.This paper takes Midea Group,a benchmark enterprise in the home appliance industry,as an example to study the cost control of the value chain of the home appliance industry.Firstly,this paper combs the relevant literature of value chain,cost control and cost control based on value chain,and summarizes the relevant theories of value chain,cost control and cost control of value chain.Build the theoretical framework and direction for the case analysis part of this paper.Secondly,this paper selects Midea Group as a case enterprise,analyzes its basic situation,composition of cost control points and existing cost control strategies,summarizes the limitations of its existing cost control system,and believes that we should improve the cost control system and implement effective cost control from the perspective of value chain.Thirdly,according to Midea’s organizational structure and business chain,this paper analyzes the necessity and feasibility of implementing value chain cost control,and uses SWOT analysis model to analyze the strategic positioning of Midea Group’s own advantages and disadvantages,external opportunities and threats,so as to provide reference for Midea Group’s problem analysis and optimization strategy of cost control based on value chain.Then,this paper analyzes the cost control of Midea Group from the perspectives of internal value chain and external value chain.From the perspective of internal value chain,this paper analyzes the problems of procurement,production and operation,sales in the core value chain of Midea Group and financial management,human resource management and technology development in the auxiliary value chain,From the perspective of external value chain,this paper analyzes the problems of the upstream,downstream and horizontal value chain of Midea Group’s vertical value chain,and puts forward optimization suggestions according to the relevant problems,combined with the SWOT analysis model in the enterprise strategic positioning,in order to improve the enterprise’s cost control system,optimize the enterprise’s cost structure and realize better value-added.