A Research Of Cost Control Of Haier Smart Home Based On Value Chain

The emergence of new technologies such as Io T,big data,cloud computing,5G and artificial intelligence has brought new growth points to the smart home appliance industry.The traditional cost control methods of the past can no longer adapt to the requirements of the development of smart home appliance enterprises in the digital era,and enterprises urgently need to adjust the traditional cost control framework and content accordingly for the past static,lagging and lack of quantitative standards.Theoretical studies on cost control at home and abroad have tended to be saturated,but there are still relatively few studies on cost control for specific cases of enterprises,especially home appliance enterprises.In addition,most of the case studies spend little time on the selection of cost drivers and the selection of the main value-added links in the value chain,and only apply the template to the cost analysis based on the previous ones and draw the corresponding conclusions.There is a risk that such studies will be detached from the actual situation of enterprises and may be unsuitable for specific applications,and it is not conducive to other enterprises to learn from their experiences and imitate them.The successful case of Haier Smart Home is very representative of cost control research,and has strong significance for the business development of traditional home appliance manufacturing enterprises.In the face of the development of digital technology,Haier Smart Home was questioned by the outside world during the exploration period because of the lack of obvious input and output effect,and the low return in the short term made Haier Smart Home once face a "mid-life crisis".However,after actively implementing the overseas market layout,expanding product categories,and increasing product R&D investment,the effectiveness of Haier Smart Home’s strategic layout and value chain cost control gradually appeared.In this paper,we have made some innovations in the selection of cost driver indicators in the enhanced operational cost control method.First of all,this paper adopts the case study method,based on the strategic cost management theory,to understand the overall development of Haier Smart Home through the enterprise cost composition,organizational structure and internal and external development environment.Secondly,based on the above understanding of Haier Smart Home,the current situation of the internal and external value chain of Haier Smart Home is analyzed,and in order to identify the value chain links that the enterprise needs to focus on,the cost drivers are retained and the functions of the main cost components are evaluated.That is,firstly,the executive cost drivers and revenue cost drivers of Haier Smart Home were initially divided,and then the specific cost drivers of each link of Haier Smart Home were clustered and analyzed by SPSS software,and the similar classes in the executive cost drivers were placed together,and the main cost drivers were retained.Then,through Pearson correlation analysis between the cost drivers of these divided major classes and the corresponding costs,as well as regression analysis of the revenue cost drivers,the main value-added links of the value chain were identified after prioritizing the cost links,and the main cost components were selected by organizing experts to score the cost components of these links in order to identify the main links of cost control in Haier Smart Home.Finally,according to the recent development trend of Haier Smart Home,the problems of Haier Smart Home’s cost control are summarized and the optimization plan of Haier Smart Home’s value chain cost control is proposed.The data in this paper comes from Haier Smart Home’s financial statements and industry development report pairs in recent years,which improves the theoretical content of the value chain cost control framework and to a certain extent makes up for the defects of static and lagging traditional value chain cost control in the past.The data in this paper come from Haier Smart Home’s financial statements and industry development reports in recent years,which improve the theoretical content of the value chain cost control framework,and to a certain extent make up for the defects of static and lagging traditional value chain cost control in the past.However,due to the inconvenience of acquiring relevant internal enterprise data,there is a certain risk of error in data presentation results,and coupled with my limited research ability,the control of Haier Smart Home’s internal cost control adoption methods may not be available,which may have certain impact on the objectivity of this paper.