Use an Example to Critically Examine Whether the ‘Sector Matrix' Framework Is Useful for Analyzing Demand and Supply Linkages in All Industries.
‘The chain concept' is …show more content…
However, the ‘Value Chain' approach also had some limitation on it. It is very easy to be imitated by the competitors if the end products is easy and didn't require any high technology to produce. As the result, the firm will lose its competitive advantage. Also, the ‘Value chain' approach is easy to be out of date as it only applied to the supply side of the firm, and directly distributed to the end customers that it won't have any additional services added to the product.
Due to the concern of Porter's Value chain approach. Gereffi stated ‘Global commodity chain' that he has attempted not only concerned the production and distribution method, it should have to analysis the supply and demand side in the Global market. He believed that globalization of economy has become the general trend to business economy nowadays. Economic activities have been spread across different countries as a further developing way of their business. We can say that ‘Global commodity chain' is a complicated of processes, or networks that the output of commodity or products. This network organized the interconnection of the