Question

XYZ semiconductor makes specialized chips for smart phones. Making these chips require extremely rare earth metals imported from other countries. The firm acquires a small shipping company in order to reduce transporation costs and to ensure timely supply of the materials. In this example, the firm is:

a. none of the choices
b. tryig to improve bargaining power of buyers
c. trying to improve its value chain
d. trying to improve its organizational structure

Answer 1

The firm is trying to improve its value chain by acquiring a shipping company to reduce transportation costs and ensure a timely supply of rare earth metals.

Step-by-step explanation:

c. The firm is trying to improve its value chain. By acquiring a small shipping company, XYZ semiconductor can reduce transportation costs and ensure a timely supply of rare earth metals needed to produce the specialized chips for smartphones. This integration improves the overall efficiency and effectiveness of the firm's value chain.