Read the information below and add additional information that you've found. Cite all sources used.Related to a product offering that would be considered a commodity, identify three key variables that would affect your choice of entry strategies. Using specific examples, how might these variables affect your analysis?Several vital variables can impact the design choice when considering entry strategies for a commodity product offering. Three of these variables are production costs, distribution channels, and differentiation potential.Production costs refer to all of the direct and indirect costs businesses face from manufacturing a product or providing a service. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead (Hayes, 2023)Production costs are an essential variable to consider when entering a commodity market. Low-profit margins and high competition typically characterize commodity products. As such, it is necessary to optimize production costs to ensure profitability. For example, when entering the rice market, a new entrant must have access to low-cost production methods to compete effectively with established players.Distribution channels are another critical variable that can affect entry strategies in commodity markets. Commodity products often rely on well-established distribution channels to reach consumers effectively. As such, a new entrant must consider the cost and feasibility of accessing these channels. For instance, in the oil and gas industry, pipelines and storage facilities play a crucial role in the distribution of products. Therefore, any new entrant must have access to these channels or have a viable alternative.Differentiation potential is the third variable when developing entry strategies for commodity markets. While a lack of differentiation typically characterizes commodity products, specific segments may offer the potential for product differentiation. In this case, a new entrant must consider the feasibility of developing a unique selling point or value proposition that differentiates it from competitors. For example, in the coffee market, specific segments offer potential for product differentiation, such as organic or fair-trade coffee.References:Hayes, A. (2023, June 29). Production costs: What they are and how to calculate them. Investopedia. Retrieved April 29, 2023, from #:Fernando, J. (2023, March 17). What is a distribution channel in business and how does it work? Investopedia. Retrieved April 29, 2023, from #:~:text=A%20distribution%20channel%20is%20the,distributors%2C%20and%20even%20the%20internet.Kopp, C. M. (2021, July 6). Product differentiation: What it is, how businesses do it, and the 3 main types. Investopedia. Retrieved April 29, 2023, from