PK Tech is a producer of computer chips. To gain advantage o…

PK Tech is a producer of computer chips. To gain advantage over other computer chip makers, PK Tech focuses on keeping its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of PK Tech’s competitors have begun to implement strategies that are reducing the company’s competitive advantage. In response to this threat, PK Tech has decided to further lower its costs by expanding its production capacity. Which strategy is PK Tech pursuing?