Research On Enterprise Cost Strategy Under The Background Of Rigid Cost Growth

On the background of the acceleration in current global economic integration, ourcountry’s market economy also perfected gradually, and increasingly fierce marketcompetition between enterprises follows. If enterprise wants to own dominance in thecompetition of market, and its products have high market share, the effective control ofcost to seize the market has become an effective way, then cost strategy generates. But,enterprises can not pursue low cost blindly, they should make cost strategy according tonational macro policies formulated and their own development needs. In order to improvethe living standards of the residents in our country, the government has made a series ofsecurity measures of the people’s livelihood. Enterprises should actively response to thecall of country, guarantee a certain employment rate in the same time, should also ensurethat enterprise employee’s salary benefits and the security spending gradually increase.The growth is not only necessary, but is a must, has a certain regularity. Since theartificial cost position in enterprises’ cost structure is very important, and in times ofrising prices, enterprises’ other raw materials costs cannot be significantly lower, andprobably even rise dramatically. So, the rigidity growth of cost in enterprises of ourcountry is universal. Then, to study the cost strategy of enterprises on the background ofcost rigid growth in our country has practical significance, and this is what this studyaims at.This article begins from the background of rigid cost growth, based on thecomprehensive summary of the domestic and foreign enterprises’ cost managementtheory, rigid cost strategic theory, introduces the life cycle theory newly. Study onenterprises’ cost strategy on the basis of making the life cycle as enterprise classification.This classification method is the most able to reflect the dynamic characteristic of cost. Indifferent growth stage, enterprises should take a different business model, and select themost appropriate cost strategy. According to the content of the life cycle theory, we maydivide enterprises according to the growing phase into four types: initial enterprise,growing enterprise, mature enterprise and recessionary enterprise. According toenterprises’ features in different stage, we can analyze suitable management strategy forenterprises. As a result, enterprises can choose the most conducive cost strategy for thedevelopment of enterprises. In application research, this paper selects the A company asthe object of case analysis. According to the partition method of life cycle, we shouldjudge which growth stage the company is now in. Then, according to the life cycle Acompany is in, its business strategy choice, relevant theory knowledge and thecomprehensive analysis of the case, we should make every effort for setting up ascientific and reasonable system of cost strategy management.