Research On The Strategic Cost Management Of Midea Value Chain

With the rapid development of economy and information technology,the traditional products and services have been unable to meet the needs of people,and enterprises should actively look for opportunities and move forward bravely.The first problem that managers of enterprises think about is how to stand out in the fierce competition,and an enterprise wants to gain competitive advantage only depends on two main points,low cost or unique products and services.In practice,strategic cost management identifies the cost driving factors from the source of cost from the strategic perspective,carries on the cost management to the value chain,and obtains the sustainable competitive advantage for the enterprise.The main role of value chain in strategic cost pipeline is to provide a positive The simple analysis route analyzes the business activities of each part of the enterprise,and can accurately grasp the cost factors that affect the key strategy.Value chain strategic cost management provides a positive impact for enterprises to shape cost competitive advantage and adapt to the changes of internal and external environment.With the value of value chain being well known to the public,the popularization rate of value chain in global manufacturing enterprises is getting higher and higher.Enterprises try to start with the value chain and optimize and perfect the business processes of the value chain.Midea is one of the value chain management to reduce the production and management costs of enterprises.Midea.as the representative of the local household appliance industry in China_belongs to the typical modern system.To build an enterprise,it is of practical significance for us to analyze the cost management mode of the enterprise.Midea value chain strategic cost management research adopts the methods of investigation,case analysis,comparative analysis and so on,and studies Midea cost management around the relevant theories such as value chain,strategic cost management and so on.This paper first introduces the basic situation of Midea and its value chain composition,and then analy zes the application and effect of strategic cost management from three aspects:internal value chain,industty horizontal value chain and vertical value chain.By analyzing the strategic cost management of Midea's value chain,it is concluded that the cost advantage can be realized by optimizing the internal value chain,cooperating with upstream and downstream enterprises to reduce the cost of the enterprise,and earrying out the competition.It is hoped that this study will contribute to the strategic competitive advantage of modern enterprises by optimizing the cost management mode by integrating the handprice chain and cooperating to enhance the competitiveness of enterprises.