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.
? A satisfactory answer will require examples and extend beyond the roots of the “production chain” from Porter at the firm level to Gereffi’s global commodity chains, and the origins of the sector matrix.
? The compare and contrast element requires and approach to Porter and Gereffi supply side linear, chain, input/output concept of production framed as activities in a business unit in a global chain where money moves back as the input moves forward and where groups of firms use common technologies to make products which complete in the final product market.
? The sector matrix couples demand side moves with firms moving into complementary products and financial results consolidated.
? A more evaluative answer should separately discuss firm level sectoral moves. The former encourages the pursuit of lower costs and higher profit- may highlight driven by stock market demands- when activities ejected are reconfigured within smaller firms.
? At the sectoral level finds employment levels often constant but lower wages and limited capture of additional surplus as product market limits result as lower costs of often result in lower prices