Israeli immigrant Shy Oogav thought he was living the American dream on South Padre Island, Texas, back in 1993. Within a year of buying a T-shirt printing shop, he had been able to use the initial profits to buy out his partner and repay the bank. What he didn't foresee was that the number of T-shirt stores in South Padre would jump from roughly 10 to 40 within two years. Now he laments, "Every day you have to compete with other shops," and it is difficult to earn a profit. Explain why Mr. Oogav should have seen his problems coming.