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Bella Blooms is a successful business that sells a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently, Natural Supply, another established fertilizer manufacturer, dramatically increased its marketing to farmers in the region that Bella Blooms views at its target market. When analyzing its industry, Bella Blooms should be concerned about the threat of ________?
Bella Blooms is a successful business that sells a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently, Natural Supply, another established fertilizer manufacturer, dramatically increased its marketing to farmers in the region that Bella Blooms views at its target market. When analyzing its industry, Bella Blooms should be concerned about the threat of ________?1) new entrants
2) substitute products and services
3) buyers' negotiating influence
4) rivalry among competitors
Final answer:Bella Blooms should be concerned about the threat of rivalry among competitors as Natural Supply increases its marketing to farmers, indicating a more competitive environment.Explanation:When analyzing its industry, Bella Blooms should be concerned about the threat of rivalry among competitors. Natural Supply, by increasing its marketing efforts, is intensifying the competition within the target market that Bella Blooms operates in. In such a monopolistic competitive market, firms like Bella Blooms must be vigilant about changes in marketing strategies and the competitive landscape. If a company is making positive economic profits, as Bella Blooms appears to be with its liquid spray fertilizer, it signals potential competitors to enter the market or triggers existing competitors, like Natural Supply, to strengthen their market presence....