The Cost Priority Strategy Of Dongfeng Wheel Co.,Ltd.

This paper has summerized the existing condition and the future objective of Dongfeng Wheel corporation.Based on the theory of cost priority strategy , the necessary of enforcing the cost priority strategy in the wheel industry in China has been pointed out. this paper has summarized the basical theory of the cost priority strategy. Cost priority strategy is a kind of management technology of overallness,innovation and advance, prior to the traditional cost management. the substance of Cost priority strategy is to seek for cost advantage, raise the overall economic benefits and social benifits of the enterprise. Carrying out the cost priority strategy needs to change the cost management concept, utilize the various tools of the cost priority strategy efficiently. If wheel company can implement this strategy successfully,it can form the competitive advantage of itself and make enterprise be in advantage in the competition. The basical theory of the cost priority strategy mainly embodies in 3 aspects: Value chain analysis, cost motivating cause analysis, strategy location analysis. In the current stage of our country,in a long time, low cost strategy is the favourable weapon to deal with the competitor home and abord. the difference of cost will decide the enterprise's competitive strength in big degree, reflecting the management level of enterprise. without higher management level of cost, the enterprise of our country is nearly impossible to survive in market in the initial stage, not to mention further promotion. oppositely if the management level of cost is high , the enterprise can continuously accumulate to get longer development. Basing on wheel company's actual condition,this paper has analysed the wheel profession advantage of human resources, value chain and 5 kinds of basic competition factors. this paper advances the specific way of low cost strategy: Concentrated resource disposition——scaled management, decomposed enterprise value chain——commission operation and innovation enterprise value chain-market stimulate to take over type operation and technology reduce cost and management reduce cost ——unifinication operation and efficient running value chain ——speeded management. In the base of drawing low cost strategy of the wheel company, this paper summarizes the possible risk in the implementing course.