Developing a Suitable Model for Strategic Cost Reduction in SANAM Electronic Company

The goal of establishing commercial and industrial enterprises, regardless of their social goals, is profitability and interests of capital owners. The process of globalization and the rapid pace of advancements in technology have lead to rapid changes in markets; and the markets are going to have a full tendency towards competitiveness. In fully competitive markets, firms are forced to accept prices; and they cannot use the market price for gaining profit, unless they use other means like providing differentiations in their products. Thus, an important survival way for firms in a fully competitive market is strategic attitude to the costs of the firm and strategic cost reduction as braid, short time and comprehensive reduction. In this article, the aim is to choose the appropriate option to reduce costs through the study of costing systems that can be applied to the cost reduction program, comparatively, according to the nature of the firm, and then to describe the components and dimensions of the selected model in order to recognize the structure of costs of Sanam Electronics Company and the competitive condition in the market. Then, in order to evaluate the dynamicity of the selected model and the possibility of its application, it will be conducted in the form of a cost reduction project and its results will be analyzed and finally the proposed guidelines for the use of the model in Sanam Electronics Company and other similar manufacturing firms will be presented.