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Using an extended example critically examine whether the ‘sector matrix’ framework gives a better strategic understanding of product markets than the concepts of ‘product’ or ‘commodity’ chains.

The product market is growing stadily, with new, advanced and more complex products being introduced into the competitive global market.
However, “there´s no single company which has all the neccessary knowledge about either the product or required process to completely design and manufacture them in house”(www.hbs.edu). Thus, analysis such as commodity chains and sector matrix is essential to identify their comparitive advantages and use them to establish themselves in a long run.
This essay will begin with a defination or an overview of both sector matix and commodity chains, followed by a detailed comparison, in order to know which gives a better strategic understanding of product markets, such as the automobile market. I will also discuss how sector matrix have been successful for Ford and how it hasn´t for other product markets.

The sector matrix framework is an extension to Porter´s “value chain” and Gereffi´s
´product` or `commodity` chains. Poter defines value chains as “Every firm is a collection of activities that performed to design,produce, market, deliver and support its product. All these activities can be described using a value chain....”(porter,1985:pp.36) and provides a framework to understand the shifts in corporate strategy.
Sector matrix is applied to complex products which require complicated infrastructure and complementary services before they can be used, such as, motoring (cars) and pharmaceutical, products which absorb nearly 1/3 of people´s disposable income. Also, it can be applied to product markets that have reached their maturity stage, where there is too much competition and thus needs to analyse how to develop a product that will

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