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College Number(Bottom Left of College Card) | 100834533 | Year: | 1 | Course Code | MN2201K | Course Tutor: | Mr Ailson De Moraes Dr Endrit Kromidha | Assignment No.: | Individual Assignment | Degree Title: | Strategic Management | Question No. & Title: | 2.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. | This essay will analysis the sector matrix and the chain concept to identify their comparative use and which has a better strategic understanding in the long-run of product market, such as the automobile market. And moreover, it will be begin with the definition and the benefits and…show more content…
This excludes other assumptions such as customer bonding in Alexander Hax's delta model (ProvenModels,2015) Comparing it now to Chrysler, the value chain activities a hardly even overlapping. Nonetheless, Porter would probably argue that the Chrysler company suffered from performing below-average and lacked in competitive advantage, so this have led to ‘stuck in the middle’ strategy 1998.Due to the merge with Daimler. As Chrysler aim to focus on satisfying customers needs and comparatively low prices, however Daimler-Benz’s focus was image and highest quality in the market (UK Essays,2013) Which, cause risk to DaimlerChrysler as to the differentiation strategy (new affordable and luxurious), making the market open up to new competitors (like BMW).(UK Essays,2013 )Porter puts it: 'being "all things to all people" is a recipe for strategic mediocracy and below average performance' (Porter, 1980: 12). Therefore,Chrysler adopt a new concept, keiretsu to restore its position as a competitive producer and to overcome this dilemma, there should be an independent value chain analyses that could carried out Chrysler’s other business units. Commodity chain (CC) was introduced in 1994 by Gereffi and Korzeniewicz as ‘a network of labour and production processes whose end result is a finished commodity’(Hopkins and Wallerstein, 1986:159). Global commodity chain (GCC ) is defined as “ as a set of transnational inter-organisational linkages that constitutes the production, the

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