Strategic Cost Management Case Study: Blue Apron

1. Blue Apron plans to gain additional efficiencies by focusing on on-going operational improvement and efficiency that is built for differentiation and agility.

This decision of Blue Apron is not only an efficiency improvement, but it is also an accounting decision because improving efficiency will lead to reduced cost to produce products. In working to improve their efficiencies Blue Apron is implementing the concepts of Strategic Cost Management. In applying this strategy, Blue Apron is evaluating their position, cost driver and value chain to blend these themes to maintain their long term competitive advantage. This decision is focusing on the cost driver aspect because the company is working to decrease cost to make goods. They are studying to find out what influences their costs and making improvements, so production is more efficient. These efficiencies will lead to a more efficient value chain specially by improving the producing activities. The reason

In this decision, a manger must consider the structural cost drivers, the organizational cost drivers as well as the activity cost drivers. The structural cost drivers for Blue Apron include their online technology system where people can upload recipes and watch recipes online. It also includes delivery to customers and thus partnering with shipment company to make sure more regions can be reached. Since Blue Apron wants to expand to more areas, some foods have a short shelf life like milk, raw meat and fresh vegetables, Blue Apron would also need to find partnerships in local areas or create fulfilment centers like Amazon to provide for those customers. In deciding to expand, there are no costs in technology as the system already exists and can be accessed anywhere via internet but if Blue Apron partnership is not in the local areas they will need to find partnerships in those