Source: adapted from G. Gereffi (2001) “Shifting Governance Structures in Global
Commodity Chains, With Special Reference to the Internet”, American Behavioral
Scientist, Vol. 44 No. 10, pp. 1616-1637.
Producer and Buyer-driven Commodity Chains
Global commodity chains (GCC) come in two major categories, one being producer driver and the other buyer driven:- Producer-driven GCC. They tend to have high barriers of entry as many commodity chains require capital/technology intensive production and economies of scale, such as in the automobile and aeronautical industries.
- Buyer-driven GCC. They tend to have low barriers to entry. Producers are bound to the decisions of buyers through the functions of design and marketing, notably when retailing and brand names are concerned. The most significant sectors concern agriculture, garments, footwear and toys.