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Analysis of Strategic Cost Management in Xiaomi under the SANKE Model

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Author: Guohao Hou

Abstract: This paper analyzes and explores Xiaomi's current cost management and the implementation of strategic cost management from the perspective of the SANKE model through a combination of theory and case studies. Firstly, an analysis and summary of existing research on strategic cost management are conducted. Secondly, the original cost management status and the existing problems in the Xiaomi Company are analyzed in depth. Then, based on the SANKE model analysis tool, the strategic cost management of Xiaomi Company from the three aspects of strategic positioning, value chain and cost drivers, are analyzed, and the concrete problems are found out. Finally, according to the specific problems and strategic objectives of cost management in Xiaomi Company, this paper puts forward specific countermeasures and suggestions for the implementation of strategic cost management.

Keywords: SANKE Model, Cost Management, Management Strategy

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