Research On Strategic Cost Management Of Smart Phone Enterprises From The Perspective Of Value Chain

With the successful development of the fifth generation mobile communication technology(5g),people’s broadband experience can be further enhanced.As the smartphone industry with the highest penetration rate of people’s life,it has also been pushed to the forefront of the storm for the first time.The major mobile phone manufacturers are undoubtedly facing great pressure of industry reform.How to grasp new market opportunities and expand competitive advantages has become the most concerned problem of this kind of high-tech enterprises.Traditional cost management only considers how to reduce the absolute value of these enterprise cost figures from the perspective of numbers.However,this old way is difficult to bring substantive help to enterprises.Therefore,we have integrated management accounting tools into traditional cost management and extended a new set of strategic cost management(SCM).Xiaomi,as a representative case of smart phone enterprises,has been using the slogan of "cost performance" since the release of their first generation mobile phones,which explains that they have rich practical experience in cost management.Therefore,this paper will select Xiaomi company as a specific case among many smart phone enterprises,and discuss it in turn according to the order of theoretical background,empirical cases and comparative analysis.Firstly,it will introduce the strategic positioning and basic business situation of Xiaomi company,and then analyze the internal value chain The implementation status and reasons of cost management in each link of external value chain.The research results confirm the success of Xiaomi’s cost management from the profitability and strategic positioning choice in recent three years,and then use the value chain tool to describe the current situation of Xiaomi’s strategy of strategic upgrading,integrating the value chain,technological breakthrough and expanding sales channels to establish competitive advantage,and deeply explore the root causes behind these current situations.Finally,it comprehensively summarizes Xiaomi’s cost management experience in how to grasp the industry trend,plan the supply chain and improve the customer experience.Combined with the market changes brought by 5g technology breakthrough at this stage,it puts forward some optimization suggestions for Xiaomi’s strategic cost management,and hopes to play a certain reference role for the cost management of other people in the same industry.