Study On Strategic Cost Management Based On Value Chain

With the increasing of globalization and competition, many enterprises have entered a meagre profit era. Because the current open source space is limited, in order to get further survival and development, enterprises have to consider more in reducing expenditure for controlling the cost. For enterprises, the cost management is not only a technical activity, but also needs more strategic thinking and overall consciousness. As a result, Strategic Cost Management is applied naturally in the cost management of enterprises. Putting more emphasis on analyzing from the competitive environment of enterprises, it can help the enterprises to build their own competitive advantage from the aspect of competitive environment, use strategic vision to focus on enterprise development in the future and enables enterprises to develop more persistently. As the important analysis tool of Strategic Cost Management, value chain can analysis cost structure of the enterprises from different links and jobs. It really controls the cost at the source. Therefore, this thesis conducts a study on Strategic Cost Management from the perspective of the value chain.As the leading enterprise in home furnishing industry, IKEA has a complete value chain. So it has certain representativeness by analyzing the strategic cost management of IKEA. According to the mode of modern enterprises' cost management and considering from the long-term development, this thesis applies the value chain of strategic cost management to analyze IKEA from two main aspects: inside and outside the enterprise. It aims to search for the adoption of unique way, the establishment of favorable competitive advantage and the formation of the unique competitive strategy which IKEA does in all aspects.Through the research of this thesis, I hope to achieve the purpose of the following main points. First of all, it orders to explore effective ways and methods which IKEA implements by analyzing the cost management of IKEA from different value chain. In addition, based on the successful experiences in the cost management of IKEA, this thesis aims to provide inspiration for retail industries in China, especially the home furnishing industry, which want to build their own value chain and form unique competitive advantages.