Research On Value Chain-based Cost Control Of New Home Business For Company H

In recent years,the state has introduced a number of policies on land procurement,house loans,and consumer restrictions,resulting in a downward trend in the new home market for the real estate brokerage industry.The costs of Company H’s new home business include channel operations,storefront costs,operating labor costs,sales and marketing expenses,platform usage fees and other expenses,which are generally high.Further analysis reveals that there are problems within Company H such as excessive concentration of cost control focus,unclear cost control key points and narrow cost control scope.In this regard,this paper investigates the cost control of new home business of Company H based on value chain theory.Firstly,collating the literature on value chains,cost control,and value chain cost control.Secondly,by collecting and organizing the cost data of Company H’s new home business in 2021 and analyzing the cost composition and cost control process of Company H’s new home business,it was found that each department only conducts cost control,budget for its own department and cannot effectively grasp the key points of cost control,resulting in high cost of channel operation and labor operation.Next,on the one hand,analyzing the cost control of the internal value chain of Company H’s new home business,constructing the internal value chain of Company H’s new home business,and collecting the costs of each activity in the value chain,calculating the cost value coefficients of each activity based on the cost value coefficient method,identifying and clarifying the four non-value-added activities of channel operation,store management,transaction services,and human resource management as key points for cost control.On the other hand,analyzing the external value chain cost control of Company H’s new home business,constructing an external value chain consisting of developers,customers,and competitors,and analyzing the vertical value chain cost control from four perspectives:developers’ cost of return and dispute costs,customers’ marketing costs,and post-sale costs.Identifying problems in developer selection,risk rating and customer segmentation,and comparing competitors’ research and development levels and marketing levels horizontally.The horizontal value chain of Company H’s new home business was found to have poor research and development cost control and weakened market competitiveness.Based on the identification of key cost control points in Company H’s new home business,cost control strategies are proposed to provide a reference basis for Company H.This paper provides a reference point for Company H to identify its cost control points for its new home business.