TOPIC :SECTOR MATRIX first used by Porter then Gereffi in order to understand sector matrix first we have to understand

erstand chain concept The Chain Concept, to explain the concept and connection between the supply side and the demand side of the market. the chain concept is combined with the value chain of producer and Globel commodity chain of Gary Gereffi value chain means the product have been added value after passing through the chain activities. It is more likely the daily production activities of the traditional production and manufacturing firms. In 1985, Porter stated out this concept because he believed that through the successful generic strategy in the production chain of the firm's business unit activities, can help the firms to achieve the competitive advantages. You can simply think about the input passing through each production steps like design, packaging, delivery products, etc And finally the value of the end products will be increased

the idea of how Sector Matrix' approached to help understanding the production and consumption side in each industry, with applied the motoring industry as an critical example

For example ; a piece of log didn't have a valuable price at first. But after being designed how to cut into pieces, and planned to make as furniture, with some colorful colors painted on it, and even the product has been advertised on TV or magazines. The price of the log' finally will rise up more than several times as its original cost. We can see this is the primary activities of the Value Chain. Sometimes, the products value may be added more if there are more supported activities like better facilities or technology. Therefore, as maintaining the highest value of its products has become the main management strategy of the firms.

The Value chain' helped to analysis both primary and supported activities in order to figure out how to lower down the cost of the product, and turned the product differentiated compare with other competitors. Global commodity chain' Gereffi has attempted not only concerned the production and distribution method, it should have to analysis the supply and demand side in the Global market 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 labour, production process, customers, states, and globally cooperated the economy with the companies. According to the growth of globalization of the commercial capital and industrial capital, it encouraged to build up two different economical networks called producer-driven global commodity chains' and the buyer-driven global commodity chains' respectively. The producer-driven' refers to those large and multinational manufacturers, that they have a big coordinating network connected before and after the manufacturing process. Example are :traditional industries specialized in capital and technology The automobile, trains, ships, and heavy duty industrial manufacturing sectors are those usual examples as mentioned in the buyer driven global commodity chains'. These industries usually involved in many different companies, subsidiaries, or other subcontractors.

For example, the Panasonic, the manufacturing firms of electrical products. It was based and having their production line in Japan in 1967. In order to produce more products Panasonic has moved its production department to the new site in Taytay, Rizal in 1971. 20years later they realized that they have to expand their market with a new better and efficient way of facilities in the foreign market for the production process. Therefore, the Matsushita Electric Philippines Corporation (Now its name has been changed to Panasonic Manufacturing Philippines Corporation in 2005) was launched in Philippines in 1992. It helps as the main production line supplying for the entire Panasonic Asia Market. Nowadays, Panasonic has comprised of over 556 consolidated companies and almost spread its manufacturing companies in each country. On the other hand, the buyer-driven' commodity chain means the overseas buyers, larger retailers or branded marketers have the greater influence in the distribution of its various production networks. Porter and Gereffi's approach only focused on the production side of the entire business market. As the result, Fround et al stated out a new analytical framework called sector matrix'. This framework is used for analyzing the business structure of the complex industries. Especially for those industries that need the infrastructure and the after sales complementary services. In a new changing economy nowadays, many companies have to develop their basic business field in order to maximize their profit and maintain their position in the market. Sector matrix can help to take the supply and demand side into account.

Sector Matrix The orientation of Sector Matrix can be projected as below Operational efficiency the impact on a companys costs It may include * Operational costs, for example: production costs, disposal fees, material and transport costs * Productivity: amount of product or service produced per employee, contract labour, and capital, related for example to: material use and waste generation, employee turnover and absenteeism. staff satisfaction and employee motivation * Fines and penalties due to compliance breaches. Conclusion Jubilant, for instance, decided to build on Indias competitive advantage in scientific talent and move up the value chain to provide research and development services for the global pharmaceutical industry. Increasing globalisation and international competition are going to require Jubilant to compete with multinationals not only financially, but right across the triple bottom line of economic, social and Environmental performance. Thus sector matrix framework gives a better strategic understanding of product markets than the concepts of product or commodity chains and Jubilant is the standing example for the same

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