Using an extended example critically discuss the view that a sector Essay

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 - Essay Example e essay analyses other tools including value chains and commodity chains in a bid to prove the effectiveness of the sector matrix that provides an in-depth understanding of the patterns of both demand and supply which are the key market features that influences the profitability of an organization (Lane, 2005). The essay will provide a systematic approach to the analysis of the above tools including their strengths, weaknesses and the comparison of their performance against the sector matrix which the paper hypotheses is the most effective marketing tool. Marketing refers to the management function mandated with the determination, anticipation and satisfaction of the customer demand. Every business organization has a primary objective of sustained profitability in order to increase its market share. The need for growth as Froud, Haslam, Johal & Williams (1998) explain in their sector matrix relies on the determination of the market. Business organizations must have a substantial market shares and possibly increase their shares a feature that will portray growth and sustained profitability. In order to achieve such growth patterns, the organizations must have effective understanding of the factors that influence the demand from the market. By understanding the factors affecting demand, the organization readily manipulates its supply of products thereby cushioning the organization from incurring loses. Additionally, understanding the relationship between demand and supply makes it possible for organizations to plan their productions th ereby sustaining their profitability as the below analysis of the sector matrix portrays (Alexander, 2010). Just as the name suggests, the sector matrix breaks down an industry into various factors that influence the production and sale of products. Understanding the industry is fundamental for every organization since it helps the organization appreciate the nature of supply and demand. This way, the sector matric overcomes some of