Final answer:
Increasing product differentiation is not a way a company achieves a cost advantage through value chain alteration. Instead, it's a strategy focused on competitive advantage through unique product qualities.
Step-by-step explanation:
The question asks about ways a company can achieve a cost advantage by revamping its value chain. Among the given options, the one that is not a way by which a company achieves a cost advantage through value chain alteration is C) Increasing product differentiation. The remaining options, such as streamlining production processes, outsourcing key functions, and negotiating better deals with suppliers, are traditional methods to lower costs and improve efficiency.
Product differentiation deals with making a product more attractive by contrasting its unique qualities with other products, which is a strategy aimed at achieving competitive advantage rather than cost reduction. Cost advantage strategies like streamlining production are aimed at making business operations more efficient, thus reducing costs without necessarily changing the nature of the product itself.