Research On Strategic Cost Management Based On Value Chain

In today’s society with the rapid development of economic globalization,the background of the market economy is changing rapidly,bringing new opportunities and challenges to many high-tech industries such as smart phones and smart hardware.Under this new situation,traditional cost management has gradually failed to meet the cost management needs of current enterprises.The reason is that traditional cost management pays too much attention to cost saving in the production process,neglects the cost management of the supply process and sales process,and also ignores the cost occurrence.forecasting and decision-making.Strategic cost management came into being in this context.Why is it called "strategy" ? Because this cost management method is from a macro perspective,it can reduce costs while allowing enterprises to obtain sustainable competitive advantages.Strategic cost management focuses on the management process and method,and its core analysis method is the analysis of the "value chain" of the enterprise.The scope is more comprehensive and the various operation chains of the enterprise can be closely integrated,so as to maximize the value of the enterprise and improve the resource allocation of the enterprise.This paper selects Xiaomi as the research object,because most of the current domestic researchers’ study on the strategic cost management model of the company is mostly traditional business,while the study results on mobile Internet business are few.At present,this strategic cost management model is rarely applied in the actual management of mobile Internet companies.Therefore,the innovation point of this paper lies in the case selection and research industry innovation,Xiaomi company as a representative of China’s high-tech industry,is a manufacturer of intelligent products in China,itself also has a strong market competitiveness,only 8 years after entrepreneurship among the world’s top 500 enterprises,the success of Xiaomi company is closely related to its strategic cost management system.The research ideas of this paper are as follows: first introduce the characteristics and basic situation of xiaomi company industry,and then introduce the profitability of xiaomi company,cost composition and its cost management status;then conduct SWOT analysis of strategic positioning of xiaomi company,clarify that its strategic positioning at this stage should be based on cost leading strategy,supplemented by differentiation strategy,and then screen out the four key strategic cost drivers of scale,integration,technology and product quality,and then analyze the value chain of Xiaomi company from inside and outside the enterprise In combination with the above analysis,the value-added and non-value-added operations in each link of the Xiaomi value chain were identified,and then the shortcomings of the strategic cost management of the Xiaomi company based on the internal and external value chains were pointed out,and finally the suggestions for improving the strategic cost management of the Xiaomi value chain were put forward from the aspects of improving the efficiency of research and development,optimizing procurement operations,establishing supplier strategic alliances,strengthening after-sales service and integrating the upstream and downstream value chains,in order to provide reference for Xiaomi companies and similar enterprises in the mobile Internet industry.