The Research On Cost Management Of M Mobile Communications Corporation Based On The Value Chain Analysis

Along with the widespread use of 3G technology in the telecommunications industry and the rise of 4G technology, disruptive change has taken in the telecommunications industry. And Chinese telecom industry has come into the period of critical and strategic transition opportunities. Faced with the new competition, telecom operators need to seek for strategic advantage, improve competitiveness and create new profit growth point. Whatever strategy the telecom operators choose, the cost is always the key issues in the process of the corporate strategy’s formulation, selection and implementation. How to make use of cost strategy for enterprises to gain a competitive advantage is the most important part of enterprise strategic cost management. However, it’s obvious that the traditional cost management can’t adapt to the requirements of the modern enterprise. The development of cost management and value chain, on the one hand, is in order to make up for the defects and insufficiency of the traditional cost management system, on the other hand is to meet the needs of the enterprise strategy management.This paper will begin with the analysis of the strategic cost management and value chain theory, and adopt the method of combining theory with company’s managing practices together. What’s more, on the basis of the analysis of original cost management about M Mobile Communication Corporation, it will introduce the value chain theory into the established system, which will make the company’s vision extend to the whole industry instead of being limited within the enterprise. This paper, discussed M Mobile Communication Corporation from inside and outside the two aspects of the value chain analysis, including internal value chain subdivision as auxiliary activities and basic value chain activities value chain, external value chain subdivision as competitors value chain and the industry value chain, thus put forward the value chain analysis in the company of the importance of cost management. On this basis the paper builds up a set of strategic cost management system which is based on the value chain for the company. This can definitely help M Mobile Communications Corporation an important place in the whole telecom industry, and provide relevant reference for the introduction of cost management in other telecommunications corporations.