The Analysis Of Competitors' Cost On The Base Of Value Chain

As the development of economy and the coming of New Economy, The area of cost management has extended from inside to outside, the mode of traditional cost management was replaced by strategic cost management which has forward looking. As the key of strategic cost management, the analysis of value chain can reduce the cost and improve the competitive edge effectively, it has important sense in perfecting the theory of strategic cost management and improving the level of cost management in China.The analysis of competitors' value chain has become the base of confirming the status of cost and gaining deportable competitive edge. It includes the analysis of inside value chain, but it breaks the analysis of inside value chain and breaks the hypothesis of absolute information. Companies can improve their value chain to get superiority in cost through confirming the competitors, confirming the information we need to get, collecting information, identifying and settling the information, comparing the value chain to the competitors' in quality and quantity and learning from competitors.This paper establishes analysis system about competitors' cost from there rationales and expatiate two problems particularly. We make the conclusion that enterprises can find their advantages and disadvantages through comparing the value chain with competitors', and then we can keep ahead in cost through controlling cost drives, reconstructing value chain and forming strategic alliance.This paper has two innovations. First, we design the system about the analysis of competitors' cost and explore the area about the analysis of competitors' cost from management accounting. It is helpful in perfecting theory and means.