Sector Matrix Vs. Value Chain and Commodity Chain

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Sector Matrix Vs. Value Chain And Commodity Chain

Submitted by jennyt on April 2, 2008

Category: Business

Words: 2455 | Pages: 10

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Using an extended example critically discuss the view that a �sector matrix’ gives a better strategic understanding of product markets than the concepts of �product’ or �commodity’ chains.

Abstract

This paper will investigate the relevance of three tools for analysing and prescribing remedies for improving company performance; Porter’s Value Chain, Gereffi and Korzeniewicz’s Global Commodities Chain framework and finally the Sector Matrix approach as described by Froud, et. al. Values and limitations of these approaches will be recognised and discussed via specific references to Ford Motor Company (hereafter to be referred to as Ford), the third largest corporation in the automotive industry.

The Value Chain

“Every firm is a collection of activities that are performed to design, produce, market, deliver and support its product. All these activities can be described using a value chainвЂ¦Ð²Ð‚Ñœ

(Porter, 1985: pp. 36)

Porter (1985) argues that firms achieve competitive advantage via implementation of successful generic strategy (i.e. differentiation, cost leadership, focus) in the chain of a particular firm’s