Main Characteristics Of The Three Analytical Frameworks...

In this essay, I will outline the main characteristics of the three analytical frameworks supply chain management (SCM), global commodity chains (GCCs) and global production networks (GPNs) and assess their strengths and weaknesses. The approaches differ and share similarities in their objectives, ideas, actors, perspectives, focus and conceptual tools. Firstly, Supply Chain Management approach is characterised in its focus on comparative advantage through cost and value advantage. It can be perceived as being too prescriptive in its insistence to evaluate the firm’s activities, how they interact to identify core competency areas or sources of comparative advantage, reach a ‘make or buy’ decision, where periphery activities are to be†¦show more content†¦The framework takes into account a limited number of actors including, the firm, suppliers and customers. However, although this carries a weakness for resulting in a narrow view with limited number of actors and too much focus on the firm, its strength lies in its deep focus into the firm which has laid the foundation on how firms operate, over which the GCC and GNP approach is built such as comparative advantage and flow of value. There is repeated emphasis on ‘interdependent relationship’ and coordination between parties within supply cha ins however â€Å"the authors appear to assume that everyone knows who is a member of the supply chain. There has been little effort to identify specific supply chain members, key processes that require integration or what management must do to successfully manage the supply chain.† (Lambert, Cooper ; 2000) Another important point outlined in this framework stemming from the comparative advantage concept is the alternative to vertical integration (Porter, 2004). To be a lead firm, it is not necessary to vertically integrate and to own all resources, it is more important to strategically position the firm to internalise core activities and externalise other activities. However, It is too focused on getting to the top of the chain and does not offer any insight to firms at the bottom of the chain on how to move up. Although, there is mention of varying bargaining power of firms with coalition partners influencing how gains are