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

Question

Quizplus · Accepted Answer

Narrowing the product line in an effort to reduce costs is a strategic policy choice made by Sematech. This is not an example of technological software or a learning-curve effect. It may impact Sematech's competitive advantage, but it is not itself a competitive advantage.

Sematech Is a Producer of Computer Chips