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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 continue seeking methods to maintain the company's cost-leadership position that would be costly to duplicate, which of the following is most likely to be a basis of cost leadership that may be costly to duplicate?
Brand Extensions
A marketing strategy where a company uses an existing brand name to launch a product in a different category.
Cannibalization
The decrease in the number of sales, income, or market presence of an existing product caused by the launching of a new product by the same manufacturer.
Corporate Branding
Corporate branding is the practice of promoting the brand name of a corporate entity, as opposed to specific products or services, to enhance its reputation and identity.
Samsung Electronics
A multinational electronics company headquartered in South Korea, known for manufacturing a wide range of consumer and industry electronics, including smartphones, TVs, and semiconductors.
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