Research On Strategic Cost Management Based On Value Chain

In recent years,as the economy and society become more and more complex,different users have different needs,corporations also need to constantly transform and innovate to meet the challenges of society.Corporations should lay emphasis on administrative cost.Because of surviving in the marketplace,the availability of cost govern will have something to do with the power of corporation’s competition.The conventional administrative cost,which underlines the decrease and get command of short period cost,can not meet the demand.In today’s complex competitive environment,enterprises can not only rely on the accounting system for cost accounting to achieve the requirements.Therefore,enterprises need to consider cost management and control from a longer-term perspective.Contemporary corporations have an valid way to decrease the cost of corporations game plan cost administrative on account of value chain.On the side of corporation tactic development,controlling cost management helps enterprises create low-cost advantages by coordinating internal and external resources and integrating value chain.Therefore,strategic cost management based on value chain has occupied a significant position in enterprise management and become a new cost management mode.This thesis uses the ways of document research,case analysis and method of conclusion and probe into the tactic cost theory and the hodiernal cost administration circumstance of Xiaomi company from the angle of value chain.This paper chooses Xiaomi as the research object because IT is a high-tech enterprise of IT science and technology.Its main business is smart phone,and IT is also involved in smart home,Internet service and other fields.IT is representative among high-tech enterprises of IT science and technology.Although not as big as Huawei,Xiaomi is also a large enterprise and has developed rapidly,ranking among the world’s top 500 enterprises in just over a decade.Xiaomi pursues high cost performance and has signed long-term strategic cooperative relations with a number of enterprises.It has its unique value chain strategic cost management strategy,and its research has certain reference significance for the development of the same industry.In the first place,this thesis expounds the value chain,tactic cost administration and the conceptual framework and pertinent theories of tactic cost administration from the angle of value chain,in the other place,sum up the analysis means of convention cost administration on account of value chain.This paper cites Xiaomi company as a case,first analyzes the basic characteristics of the high-tech industry,summarizes the fierce competition in the industry,and introduces the general situation of Xiaomi company,including the basic introduction,main business,cost composition and cost control status.Then it uses Porter’s five forces model and SWOT analysis to discuss Xiaomi company from three aspects: tactic analysis,tactic location,value chain and cost actuate.Then analyzing and conclusion the tactic cost administration means of each link according to Xiaomi company’s internal and external value chain theory.Finally,it introduces its cost management in detail on the basis of fully recognizing its cost management effect At the same time,it also deeply excavates some deficiencies in the current management of Xiaomi company,and puts forward some suggestions for improvement,aiming to promote Xiaomi company to further improve the level of cost management,and also provide feasible reference for other high-tech enterprises.On account of the full study of the subsistent literature and a synthetical analysis of the status quo of Xiaomi’s cost administration,this thesis comes up with the view that Xiaomi’s tactic cost management method of giving value chain effectively promotes the company to reduce costs and enhance its market competitiveness.In my opinion,the strategic cost management based on the value chain promotes Xiaomi to further improve the workpiece ratio of resource configuration,majorization the corporation construction,and inject strong power into the development of the company.From this we can see that put into effect of value chain tactic cost administration is the necessarily modality of community progress,to satisfy the demands of chronicity evolution of corporations.We can get some enlightenment from the company’s own cost management strategy: we should pay attention to the enterprise’s unique value through the research of technology chain.Moreover,corporations need to clear-cut the tactic progress targets of corporations by means of the interior and exterior economic conditions,identify the advantage links of value chain,and ceaselessly regulation and perfect each link of cost chain to better decrease and get command of costs.At the same time,we should also establish a good relationship between upstream and downstream to form a strategic alliance,cooperate with each other in their respective areas of responsibility,and unify the interest relationship between enterprises,so as to achieve a win-win situation.