Are the barriers to entry in the automobile manufacturing industry low, moderate, or high? Explain. Your answer should address each of the factors associated with entry barriers: economies of scale brand identity and product differentiation capital requirements switching costs access to distribution channels cost advantages independent of size government policy 6. Is the intensity of rivalry in the fast-food industry low, moderate, or high? Explain. Your answer should address each of the factors associated with the intensity of rivalry: Concentration, cost factors, differentiation, exit barriers, entry barriers, industry growth, 7. Ryanair, Wal-Mart, Timex, Casio, and Hyundai are all OFTEN cited as examples of firms pursuing cost leadership strategies. Still, these firms make substantial advertising investments, which seems more likely to be associated with a product differentiation strategy. Are these firms really pursuing a cost leadership strategy, or are they pursuing a product differentiation strategy by emphasizing their lower costs? 8. A firm with a highly differentiated product can increase the volume of its sales. Increased sales volumes can enable a firm to reduce its costs. High volumes with low costs can lead a firm to have very high profits, some of which the firm can use to differentiate its products further. What advice would you give a firm whose competition is enjoying this product differentiation and cost leadership advantage? 9. Recently, a home delivery shaving company, "Harry's shave club," claimed it could sell higher-quality razors at a lower price because it owned the factory that makes the razors. What conditions must hold for this assertion to be true?