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Question
Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
If Sematech were to choose to narrow its product line in an effort to reduce costs, this would be an example of
A) technological software.
B) a policy choice.
C) a competitive advantage.
D) a learning-curve effect.
Answer
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