Using an extended example critically examine whether the

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Strategic Management : Sector Matrix Framework vs . Commodity chain Analysis

Extinction of the linear value chain as a means of analyzing the product market is becoming seemingly necessary with the global rise and expansion of industries and sectors . Demand and supply relations are constantly interfering with each other hence disregarding use of commodity chains as an effective way to understand the market demand Understanding the product market is a challenge that cannot be overlooked because every business

relies on the market for its profitability . The management has a task to integrate the factors of production so as to profit from the business through reduction of costs while maintaining quality to improve customer base . Porter 's use of the supply chain to study the product market defines a sector as a group or collection of firms producing the same products while using the same or similar technology to develop the products . This implies that market is likely to be similar for these goods and therefore the concept of value added is appropriate for studying the product market (Porter , 1985 29-38 . Haslan and Neale (2000 : 87-96 ) on the other hand describe the use of the commodity chains as lacking in the study of the overall economy . According to Cohen (1995 : 331-345 ) market for goods is not only determined by the different prices set by the separate firms in that particular sector but also by other sectors in the economy . The consumer 's...