Modern strategies and their role in managing the crisis of high product costs and achieving competitive advantage

Abstract

The high costs of products are among the most prominent crises experienced by companies at the present time, as companies were following traditional strategies such as cost accounting strategies, administrative strategies, operations research strategies, industrial engineering, etc., and these strategies in light of developments and rapid changes have become useless because they focus on cost Without focusing on quality on the one hand, and as a result of changing the composition of cost elements thanks to automation on the other hand, therefore, the cost management in these companies had to adopt modern strategies that keep pace with the changes taking place and focus on the two dimensions together, M Modern cost management strategies are cost-based system activity and reverse flow and production time and cost targets and continuous improvement and value engineering analysis and quality management and comprehensive analysis of the product life cycle costs.. The research dealt with the appropriate strategies for managing cost and resolving the rise in it with the aim of reducing through a presentation of the role that these strategies play in enabling the company to control cost and quality and adopt rational decisions. Managing their costs because cost management in business companies means the ability to keep abreast of changes taking place, whether at the level of internal changes in production systems or external changes in competition and the storming of markets and multinational companies, as modern strategies To manage cost, it is concerned with the two dimensions (cost and quality) and work to balance between these two dimensions because focusing on the reduction sometimes leads to neglecting quality and vice versa by focusing on quality leads to an increase in the costs borne by the company.