A Study On Cost Leadership Strategy Of Mi Company

With the continuous and high-speed development of science and technology and the rise of internet industry,the smart phone industry also developed rapidly and gradually become the lord of mobile phone market.All famous smart phone brands concentrate on reinforcing research& development technology and updating products,new brands take over the market share with price advantage.Therefore,the smartphone market is getting increasing competitive.Currently,the priority for Mi company is to take more market share and stand out in the market.In recent years,to grab the market share of smart phone,the imitators and followers emerge one after another.The traditional phone manufacturers with the advantage of distribution channel gradually enter into the three or four line market.Facing the fierce market competition,Mi company must use cost leadership strategy to achieve success and get more market share.The cost leadership strategy is adopted by Mi company,which is this article will focus on.The analysis is overall and specific.Firstly,this article begins from the theory of cost leadership and introduces the function,implementation condition and management process of cost leadership.In addition,three main analytical methods that applied in this article are introduced in detail.It includes Porter five forces analysis,SWOT analysis and value chain analysis.Secondly,the current operation status of Mi company is analyzed through the complete and multi-layered study on internal and external environment of Mi company.To sum up the concrete measures of cost leadership strategy implement,this article makes the statements from the aspects of purchaing material,research and development of product,marketing and sale and service cost.Eventually,this article provides the specific suggestions on cost leadership strategy implement,these are setting cost management team,making the overlord of mid-and low-end market,establishing the valuation system of suppliers and planning the scientific development of the whole industrial chain.