1. The threat of new entrants is increased if:

a. access to distribution channels is hard to gain.

b. economies of scale in the industry are high.

c. product differentiation in the industry is low.

d. capital requirements in the industry are high.

2. A river barge company can offer cheaper, although slower, per pound transportation of products to companies when compared with transportation by air, truck, or rail. The river barge company should first target customers whose companies use

a. the integrated cost leadership/differentiation strategy.

b. either of the focus strategies.

c. the cost-leadership strategy.

d. any of the strategies except the focused differentiation strategy.