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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 limitation of these approaches.

As mention, this paper will critic the three tools for analysing and prescribing remedies for improvement in the company performance; the sector matrix framework and the chain concept, Value chain and Global Commodities Chain.This approach will be explain through the seventh-largest auto maker in the automotive industry, Chrysler ( Vanne,2014).

Value chain was introduced in 1985 by Michael Porter as a “basic useful tool for firms to achieve competitive advantage and enhancing it to sustain” ( Porter 1985 :26).

It defines as a series of activities that builds and create business conceptualising the activities that is provides product and service to a customer (Ensign n.y.) and (Economictimes,2015)

Its describe as analysing which focuses on the activities performance in designing, producing, marketing and distributing product (Porter, 1985:26) a full range of activities from conception to delivery(Theo,2015). It gives useful activities and focuses on creating valuable activities that gives company advantage For example, the ability to charge prices; lower cost of manufacture; and response to

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