Research On Strategic Cost Management Based On Value Chain

In recent years,mobile Internet technology has boomed in China,and the number of users has steadily increased.After experiencing the great thriving of mobile Internet era,the idea of "everything connected via Internet" has inevitably entered the public view in 2019.Advances in science and technology enormously affect market economy and changes in business management models.As a company producing smart consumer products,Xiaomi was shortlisted in the world’s top 500 companies in 2019.Maintaining product diversification and the ultimate cost performance advantage,Xiaomi’s success is inseparable from its huge industrial layout and powerful cost management model.Therefore,Xiaomi’s cost management model is worthy of research from a strategic perspective and implementation.This thesis selects Xiaomi Group as the research object,and adopts a case study approach.Firstly,the research background and significance of this thesis are introduced;secondly,the definition of the concept and theoretical basis of the value chain management and the strategic cost theory are explained.Again,the basic situation of Xiaomi Group and the cost management method are introduced,and determined based on strategic positioning analysis Necessity and importance of cost leadership strategy,through cost driver analysis and internal and external value chain analysis,to study the implementation and practical value of strategic cost management model.Then,it expounds the implementation of strategic cost management from two aspects of internal and external value chain.With the help of financial indicators and market performance,the effect of Millet’s internal value chain and vertical value chain strategic cost management is expounded.With the benchmarking analysis of competitors,the effect of horizontal value chain strategic cost management is elaborated,and the effect of cost management is summarized.This thesis summarizes the advantages of Xiaomi group’s strategic cost management based on the value chain,summarizes the enlightenment,explains the shortcomings of Xiaomi group’s value chain strategic management,and puts forward countermeasures to provide reference for the formulation and implementation of cost management mode of other enterprises in the industry.In general,Xiaomi’s strategic cost management thinking closely fits its business development model and overall development strategy,focusing on overall management and control,and the cost management process attaches importance to cooperation and synergy and focuses on the core competitiveness of resource inputs.For the Internet industry that has broken through the traditional business model,Xiaomi’s strategic cost management method is more in line with the strategic direction of industrial ecology,and its management model has certain reference value.For emerging domestic technology companies,Xiaomi’s management model has a certain practicality,which helps companies to improve efficiency and strengthen the "Made in China" power on a certain level.