Study On South West Petroleum Drilling Company Strategic Cost Management From The Value Chain

Energy is an important production factor in national economy and material basis in social development.Among the kinds of energy,petroleum resource has become the main part of the energy consumption.In the last 50 years,our petroleum enterprises have made great progress.In the view of the current rapid development of the social environment and the stated-owned petroleum enterprise strategic restructuring and reform,the petroleum enterprises are not only in the face of development opportunities,but also facing an unprecedented challenge.In the fierce market competition,the petroleum enterprises should construct the strategic cost management theory from the value chain and constantly improve the enterprise cost management standards to achieve the lasting competitive power and take the road of sustainable development.In the current severe oil drilling market situation,only by changing the traditional cost management mode can we take a place in the fierce market competition.This paper makes connections between the theory of value chain and the theory strategic cost management in order to establish the strategic cost management based on value chain.Take Southwest Petroleum Drilling Company as an example to illustrate this theory of the strategic cost management based on value chain,focusing on the southwest petroleum drilling company’s internal value chain analysis,the industry value chain and rival value chain.Between the current interests and long-term development,Southwest Petroleum Drilling Company should firstly pay attention to the internal value chain.Find the problems of the internal value chain,strengthen the value-added services,eliminate the non-value-added services and optimize and reconstruct it.Secondly,through the analysis of petroleum industry value chain,Southwest Petroleum Drilling Company looks for the strategic core of petroleum industry and adopts the correct integration strategy to establish strategic alliances to reduce business risk and cost.Lastly,through the research on the competitor value chain,Southwest Petroleum Drilling Company could set a benchmark enterprise and find the relative strengths and weaknesses to promote own development to merger or combination.Through a series of internal and external development measures,Southwest Petroleum Drilling Company begins to try the sustainable development road of coordinating the enterprise value,energy resource and development of social responsibility.Although the strategic cost management based on the value chain has many deficiencies in practical application,the application of value chain cost management is of great significance to the development of enterprises.