Application Study Of Strategic Cost Management In Telecom Enterprise

Telecom industry is a very important industry related the national economy and people's livelihood. With furious competition, the cost management plays a very important role as the gaining of competitive Strength in the competition of telecom industry. The cost management in the past time was just compress the cost in the manufacturing stage, so the telecom company needs the innovation in cost management. Strategic Cost Management (SCM) breakthrough of the traditional cost management and it has the property of long term, competition, and extroversion generality. So it can help the telecom company know the situation of competitor and gain the success in the furious competition environment.Nowadays, there are some problems exist in the cost management of telecom company , for example, the concept of cost management can't catch the trend, and the scope of cost management is too narrow and so on. The article analyzes the situation of the telecom company by using the Strategic analytic tools and the value chain of the company and the telecom industry, and give the suggestion of the company should at the highness of strategic implement the cost management. At the last chapter gives some suggestions implement the SCM.The telecom company also should accurately calculate its product when it wants to keep its competition strength for a long time. But because of the particularity of telecom net working, which makes hard to calculate the cost of telecom product. So this article give the suggestion of using the tool of SCM -- Activity-Based Costing (ABC) to calculate the cost of the telecom products. ABC makes the price of telecom product more logical and scientific, and it also let the telecom company have more competitive strength.