Research On Strategic Cost Management Of BYD New Energy Vehicles

Under the background that the concept of green development and low-carbon economy have become the mainstream ideas of ecological civilization construction,China has elevated the development of new energy vehicle enterprises to a strategic level of national priority development.With the release of the "Decision on Accelerating the Cultivation of Strategic Emerging Industries" and the formulation and implementation of related supporting policies,Chinese new energy vehicle enterprises ushered in a rare development opportunity in history.Since the national "Tenth Five-Year Plan",a total of 26 national standards on new energy vehicles have been issued,and 796 domestic and foreign patents have been obtained.Through several years of efforts,China’s research and development of new energy vehicles has made significant progress.Up to now,it has initially formed a power battery technology system and industrialization capability with independent intellectual property rights,and some products have international competitiveness.However,compared with foreign new energy automobile giants,Chinese new energy automobile enterprises have room for development in terms of intelligent level and safety performance.During the epidemic,downward economic pressure has also had a certain impact on new energy vehicle enterprises.Therefore,China’s new energy automobile industry urgently needs to introduce and optimize strategic cost management,strengthen the strategic position of enterprises while reducing costs,to maximize the cost benefit.As a representative domestic enterprise in the new-energy automobile industry,BYD announced in 2007 that it would transform from a traditional automobile enterprise to a new-energy automobile enterprise.Relying on its development experience,BYD has a set of mature internal management system and little experience in strategic cost management.Through in-depth study of BYD strategic cost management environment,strategic planning and strategy implementation,summarizing the experience of strategic cost management,providing experience reference for the implementation and optimization of strategic cost management of other new energy enterprises.This thesis first expounds the research background and significance of strategic cost management,and defines related concepts through the collation of theoretical and practical studies on strategic cost management in the academic circle.Then,combining with the case of BYD strategic cost management,the thesis introduces the basic overview,strategic environment and strategic planning of its new energy vehicles.Then from the external value chain cost management,internal value chain cost management,strategic cost driver management three aspects of BYD new energy vehicle strategic cost management to analyze the implementation of specific content,and evaluate the implementation effect.In the external value chain cost management,BYD strengthens enterprise strategic cooperation,opens the supply chain system,strengthens the strategic alliance,and stabilizes the long-term cooperative relationship.Customer demand to drive production,accurately grasp the downstream market,improve the domestic market share;Integrate the horizontal value chain,expand the global market,the international market share is considerable,overseas export volume has increased dramatically.In terms of cost management of internal value chain,BYD builds smart industrial park and digital factory,realizes automation and intelligence of production process,reduces production cost and improves production efficiency.Build the "online + offline" dual-channel sales system to expand sales channels and reduce sales expenses;Provide high quality and differentiated services to meet customer needs and create customer value.In terms of strategic cost driver management,BYD builds the whole industrial chain system to maximize the cost benefit;Focus on self-research core technology,cultivate innovation ability,improve research and development efficiency;Optimize enterprise organizational structure,strengthen internal collaboration,and reduce labor costs.Finally,through the analysis and evaluation of the implementation effect of BYD new energy vehicle strategic cost management,this thesis summarizes the experience worth learning and matters that should be concerned.For new energy automobile enterprises,the implementation of strategic cost management should fully analyze the internal and external value chain and strategic cost drivers,establish and strengthen strategic cooperative partnership,and strengthen the cost control and connection of each link of the internal value chain.At the same time,from the strategic height of comprehensive control and improve the cost drivers,to achieve the maximum cost benefit.