Analysis on Marketing Strategic Cost Management of Xiaomi Science and Technology Value Chain

Xiaomi technology value chain marketing strategic cost management analysis model is as follows:

Xiaomi Company's strategic cost management based on internal value chain is mainly realized through the following ways:

1. Make every effort to promote open innovation and reduce R&D costs.

Xiaomi Company has invested a lot of capital cost and human services in the establishment of R&D team and related production and development work. By involving customers in the development process, the company can fully understand users' product needs and enhance users' sense of participation, which not only reduces the testing cost of the company's R&D innovation team, but also avoids the risk that future products do not conform to customers' purchasing ideas, and greatly enhances the company's innovative R&D ability.

2. Strictly control the price and quantity to reduce the procurement cost.

Xiaomi Company maintains cooperation with different production suppliers in the allocation price of spare parts, and chooses the upstream enterprises that meet the product quality requirements and offer lower prices. For example, the CPU of Xiaomi mobile phone is purchased from Qualcomm, and Sharp is selected as the main supplier on the screen.

Xiaomi Company strictly controls the inventory in terms of product quantity to avoid sunk costs and unsalable risks caused by product backlog. At the same time, Lei Jun also paid special attention to the material quality of spare parts, and established perfect product quality control within the company to ensure the production quality of products.

At present, the main strategy of Xiaomi Company is cost leadership strategy, but in the future Xiaomi Company will develop into differentiation strategy. Only in this way can it grow and develop in the increasingly fierce market competition, and the methods of cost control will also change with the change of competitive strategy.

Xiaomi founder Lei Jun's view on strategic cost management.

1, cost awareness should be established from the company's establishment.

During the internet bubble, the cost of capital was relatively low, and it was easier for startups to get money. Some entrepreneurs start luxury businesses. Such entrepreneurs have never had a hard time, thinking that the future will be smooth sailing, they began to burn a lot of money, rent luxury offices, hold luxury meetings and smash market expenses.

Once encountering difficulties or drastic changes in the market environment, such companies are prone to bankruptcy. Therefore, if entrepreneurs don't develop cost consciousness at ordinary times, it will be very difficult when they really encounter problems, from extravagance to thrift.

2, cost awareness only from the boss, it is possible to implement to all employees.

If the boss doesn't set an example and repeatedly emphasize the establishment of a cost control system, the cost management of the whole company will be very chaotic, and such a company is not easy to succeed.

For example, in Li Ka-shing, an ordinary watch has been worn for more than 20 years, and the company in Li Ka-shing will have excellent cost control. Another example is Lenovo. Liu Chuanzhi believes that Lenovo's success lies in wringing out towels, which means that Lenovo's cost control is also excellent.

3. Saving money means making money.

In the case of cash shortage, all managers' plans are to increase revenue and reduce expenditure. We all know that increasing income and reducing expenditure should be balanced, but increasing income is not easy. The market competition is so fierce that it is unlikely to be effective in the short term. For throttling, it is relatively easy to do. As long as we work hard and strengthen management control, the cost will easily come down.

There is a simple reason. The money earned by ordinary enterprises needs to pay the cost of sales and production. And you need to pay sales tax, etc. The remaining third will be fine.

Strictly control the cost management and control the cost execution: the money that should be spent must be spent, and the money that should not be spent cannot be spent at all. Saving money does not mean not spending money, which may cause greater waste. Therefore, the money spent must be spent and cannot be discounted.

For example, the office can be rented cheaply, but it doesn't mean that the office is crowded and messy. If the office is uncomfortable, employees' work may be inefficient, which is a greater waste. You can't spend a penny of money you shouldn't spend. You should start with every little thing. Many entrepreneurs feel that the employees who start a business together are very hard, and they are generous in reimbursing telephone bills, taxi fares and meals, and even basically ignore them.

There was not much money at first, but once this trend was formed, it was difficult to improve it. There are many people, and then I meet some unconscious people. These expenses are astronomical. In fact, there are many ways to reward employees, such as giving better salary or more stocks, but we can't relax in cost management.

Baidu encyclopedia-Xiaomi technology co., ltd.