Kraft Macaroni & Cheese is now challenged by new competitors such as Annie's and other store brands, which Porter's model for industry analysis calls the threat of new entrants.

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 Creamy Macaroni and Cheese with Real Aged Wisconsin Cheddar.

Kraft Macaroni & Cheese Is Now Challenged by New Competitors