Research On Strategic Cost Management Of Midea Group Based On Value Chai

In a globalized economy,competition between companies is becoming even fiercer.,and if enterprises want to survive and develop,they need to do a good job of both open source and cost cutting,of which cost control is an important part of cost cutting.In the past,enterprises have adopted cost management,often focusing on cost reduction without regard to other items,which is likely to lead to product quality failures instead of making things worse.For the external environment of the enterprise is not well considered,in addition,the traditional cost management idea is to reduce and limit the business activities as much as possible to achieve the effect of cost reduction and efficiency,ignoring the link between cost management and competitive advantage,enterprises to adapt to the needs of fierce competition,the implementation of strategic cost management is an inevitable choice for modern enterprises to operate lastingly,strategic cost is to take the competitive advantage of enterprises as the starting point,seeking the overall Strategic cost is the starting point of the enterprise’s competitive advantage,seeking the overall lowest cost in the long term,its management object includes three aspects,in addition to the enterprise’s internal value chain and industrial value chain,and the value chain of competitors who constitute a competitive relationship with the enterprise is also covered.If enterprises can accurately understand the idea of strategic cost management and apply it to enterprise management,they can better pursue profits and establish and maintain their own advantages.In this paper,after reviewing relevant electronic materials in the school library and reading numerous professional literatures,Midea Group,a representative company in the household appliances industry,is selected as a research object,with value chain theory and strategic cost management theory as the research basis.The Midea Group situation is then presented and the value chain is chosen as the main perspective of analysis.An in-depth study of Midea Group’s cost drivers,strategic positioning and internal and external value chain is carried out,which concludes that Midea Group has poor awareness of hidden cost control,insufficient value chain integration and low competitiveness due to insufficient technological innovation.It also analyses the causes of these problems and then proposes optimization measures,such as strengthening the awareness and strength of hidden cost control,improving the integration of the whole value chain and increasing technological innovation to improve its own advantages.In order to reduce costs and increase efficiency,improve their own competitive advantages and achieve industry status,it is suggested to establish a strong feedback support mechanism and incentive policy,make proper use of Big Data and other information platforms,and continuously improve internal and external enterprise strategic cost management programs.This document helps companies identify their own strategic cost gaps,facilitates timely improvement and optimization,and helps them improve their core competitiveness.It also provides guidance to other companies on how to implement strategic cost management in the value chain.