Critically evaluate each of the following four statements made by an industry analyst (each part carries an equal weight):

1.It is better to be a differentiator than a cost leader, since you can then charge premium prices.

2.It is more profitable to be in a high-tech industry than a traditional industry.

3.The reason why industries with large investments have high barriers to entry is because it is costly to raise capital.

4.Strategy analysis is an unnecessary distraction in doing financial statement analysis. One should just get straight to the accounting issues.