Sector Matrix Framework Essay Example | Topics and Well Written Essays - 2000 words

Sector Matrix Framework - Essay ExampleThis paper aims to evaluate Sector Matrix Framework for its usefulness in analyzing demand and add on linkage. This evaluation will compare Frouds Sector Matrix Framework with Porter Value chemical chain concept and Gereffis Global Commodity Chain Framework. Value Chain Approach Concept Michael Porter in his 1985 book Competitive Advantage Creating and Sustaining Superior Performance gave the management concept of the value chain. A value chain is a firms chain of activities to produce its output. It focuses on the organizations process view. Porter classified the hundreds of activity of converting comment in to output in two categories. Particularly, primary activities, which include inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Service (Porter, 1998). These activities are Involved in the physical public of the product and it sale and transfer to the buyer as well as after sales assistance (Porter, 1998). The other category is of Support activities, which includes Procurement, Human mental imagery management, Technological Development, and Infrastructure (Porter, 1998). ... Porter believes that a firm to achieve competitive advantage should focus on its discrete activities in designing, producing, marketing, delivering, and supporting its products (Porter, 1998, p.33). That is why he introduced value chain as a valuable tool for systematically analysing these activities. Analysis of Demand and Supply Porter value chain approach take demand and show on the bases of value adding procedure and the industry structure. Porter believed that the interdependent processes of the value chain adds value to the product and, as a result, lastly generate demand. He was further of the believe that as value chain delivers value to the customer with firms obtaining competitive advantage for the production of the product it helps to determine the supply (Sople, 2012, pp. 37-41). According to Porter, the dem and and supply balance is very much dependent upon the structure of the industry. As the industry structure plays a vital role in determining an organizations profit, it has a significant role in achieving and maintains demand and supply balance of a product. Evaluation Although, chain concept is one of the most applicable and successful concept for achieving competitive advantage it is not without drawbacks. Chain concept is not of much help for a diversified firm operationally define as one sells related and unrelated products thus compete in different industries. It works for commodities, which do not need infrastructure and complementary function before there usage. The chain value analysis of Ford would evaluate that the company due it to it being involved in more than one generic wine strategy suffers from lack of competitive advantage and exhibits below average performance. There may be some