Research On IMS Group’s Cost Control From The Perspective Of Strategic Cost Management

Based on the Internet,the new economy plays more important roles in the trend of China’s economic transformation.In recent years,the growth speed of the New Economy is even faster than our nation’s GDP.Internet economy has become an indispensable part of people’s daily life,especially after the outbreak of COVID-19 in 2019.Marketing is the supporting industry which insure the promotion of the whole Internet economy,it determines how brands and services reach consumers through the Internet,which directly controls a company’s competitive advantage.Unlike other Internet marketing companies,Inmyshow(IMS Group)develops the blue ocean market,focuses on Internet Celebrities,and avoid the fierce market competition.IMS Group is the only unicorn company in China’s stock market,which create the marketing concept of Internet celebrities.The company builds WEIQ platform and uses big data analysis technology to match brand owners and online celebrities.At the same time,the company has also carried out diversification,expanding products to the upstream and downstream of the industrial chain.In the past five years,although the income growth of IMS Group is good,but the cost growth is even more faster,it means that the company’s cost management has some problems.Cost is the key point for enterprises to obtain sustainable advantages.Blindly reducing operating cost will increase profits in a short term,but harmful to the long-term strategic goals.This paper focuses on company’s strategy,analyzing the internal and external environment of the enterprise,using the strategy cost management method,and puts forward suggestions to the enterprise managers.Firstly,this paper sorted out the overall situation of the Internet economy and online celebrities,and introduced the current industry background and regulatory requirements.Then we analyze the research on strategic cost management and advertising cost management,find out the lack of existing research conclusions about Internet marketing,and explain the purpose and significance of this study.We also introduce the research ideas and methods of the paper,and defines the theoretical basis and key concepts.Secondly,this paper analyzes the cost and expense management policies of IMS Group and sort out the existing management defects.Based on the Shank Model,this paper uses SWOT analysis and Porter’s Five Forces model to locate the business strategy of enterprises,and analyzes the industry and cost drivers from the internal and external value chains.Then we analyze the structural cost and executive cost drivers from the perspective of strategic cost drivers.According to the analysis results,we put forward several suggestions.Finally,we think using strategic cost management method can reduce the world show operating cost.At the same time,give suggestions to emphasize that the management should pay more attention to strategic cost management and improve the cost management system.