Sematech Is a Producer of Computer Chips

question 26

Multiple Choice

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.
-By employing a low-cost competitive strategy, Sematech has made itself

• A) less able to withstand industry price wars.
• B) more vulnerable to rivals.
• C) less vulnerable to the power of suppliers.
• D) more vulnerable to the power of buyers.

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Definitions:

Nervousness

The feeling of being anxious, tense, or worried, often in anticipation of an event or in response to a stressful situation.

Daytime Sleepiness

A condition characterized by feeling unusually sleepy during the day, which can be a symptom of sleep disorders or other health issues.

Extrapyramidal Effects

Side effects caused by certain medications, affecting movement control, such as tremors or stiffness, not involving the pyramidal tracts.

Antipsychotic Medication

Drugs used to treat psychiatric conditions, primarily to manage psychosis, including schizophrenia and bipolar disorder.