Sematech Is a Producer of Computer Chips

question 84

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.
-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?

• A) establishing economies of scale
• B) exploiting learning-curve economies
• C) purchasing new technological hardware
• D) securing differential access to low-cost productive inputs

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Definitions:

Accuracy

The degree to which information, measurements, or predictions correspond to the true values or outcomes.

Perceptions

The process by which individuals interpret and make sense of sensory information, leading to their understanding of the world.

Behavior

The actions, reactions, or functioning of an organism, often in response to external stimuli.

Impression Management

The process through which individuals attempt to control or influence the perceptions others have of them, often through strategic self-presentation.