Humberto,the owner of a small floral shop,is worried because he recently heard that a popular local grocery store,just two blocks away,is adding a floral department soon.Humberto is concerned because new competitors can take away customers from existing organizations.

Question

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New competitors can take away customers from existing organizations,which is called the threat of new entrants in the model.Example: Kraft Macaroni & Cheese is a venerable,well-known brand but is threatened from the low end by store brands,such as Walmart's brand,and from the high end by Annie's Organic & Natural Mac and Cheese.

Humberto,the Owner of a Small Floral Shop,is Worried Because He