The Research On Application Of Strategic Cost Management In H Company

In21stcentury, economic globalization has made the competition between enterprises fiercer, and theprice of electronic products is getting lower and lower. So a corporation has to reduce its cost in order toget profits. But, traditional cost management does not have much space of cost reduction, so someenterprise often reduces the product quality for the sake of greater cost-cutting which instead weakens thecompetitive power of the enterprise in the long term run. In contrast, Strategic Cost Management can be abetter choice for its features of comprehensive, systematic and long-term.In recent years, with the sustained and rapid development of science and technology, smart phone hasbecome the main stream product in the mobile market. Major brands not to be outdone, and emergingbrands spring up, which makes the mobile market increasingly competitive. As a result, H company, asmart phone production and sales company, is facing unprecedented pressure. Therefore, how to stand outfrom the plight of market competition becomes a challenge for it. Firstly, this article tries to study thetheory of Strategic Cost Management, introduces the concept, mode and method of it. In the next part, itmakes a comprehensive analysis of H company by using the Strategic Cost Management methods ofstrategic positioning analysis, value chain analysis and cost driving analysis. Then it provides appropriatemeasure to introduce the idea of Strategic Cost Management to H company, in order to guide it toimplement the idea into its routine management and enhance its long-term competitive advantage.