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.
-Sematech is pursuing which strategy?

Question

Quizplus · Accepted Answer

Sematech is pursuing a cost-leadership strategy by aligning its value chain to reduce costs below all of its competitors. The decision to add production capacity in an effort to lower costs further emphasizes Sematech's cost-leadership strategy.

Sematech Is a Producer of Computer Chips