Research on Strategic Cost Management of Enterprises Based on Porter’s Value Chain Model

Abstract

With the increasing competition among enterprises, modern enterprises are facing a complex internal and external situation, which requires enterprises to strictly control their own cost management. The cost management activities of enterprises have great potential. Through effective cost control, we can strictly control the cost management of each link, which can reduce our own costs and improve their competitiveness. Through Porter value chain model, enterprises can control their own strategic cost, which caters to the competitive environment of enterprises. Through the value chain analysis tool of strategic management, we can better calculate the cost management of value chain, which can break through the limitation of traditional cost management. Through the whole life cycle, we can save production, R &amp, D and design, raw material procurement, production and processing costs, which can complete the whole process control of the value chain. Firstly, this paper analyzes the concept of Porter’s value chain model. Then, this paper analyzes the strategic cost management based on value chain. Finally, some suggestions are put forward.