What Is Strategic Cost Analysis?

Strategic cost analysis refers to comparing the cost of each business activity of the company and key competitors one by one based on the industry value chain in order to obtain cost advantages and achieve the goal of strategic cost management, so as to accurately find the cost advantage or Comprehensive cost analysis of root causes of disadvantages. The strategic cost analysis is based on the analysis of the company's external environment, internal conditions and competitive situation. Through these analyses, it reveals the relative cost position of the company, and describes the available external opportunities and internal advantages, and indicates the threats and weaknesses that the company may face. To clarify the key content of enterprise cost management. ^[1]