Question

The competition between firms within a strategic group is: Group of answer choices
an unknown factor in the analysis of competitive practices within a firm's strategic group.
typically very low.
less intense than the competition between strategic groups.
greater than the competition a member of a strategic group and companies outside that strategic group.

Answer 1

Answer:

Option D Greater than the competition a member of a strategic group and companies outside that strategic group.

Explanation:

The reason is that a strategic group focuses on a single market segment which means that if one company in the group is selling footballs of quality B then all of the members of the strategic group are also selling the football of quality B. And the firms who are in the other strategic group are selling other than quality B footballs. Because all the products in the strategic group are 99% similar to the competitor's products, the competition within the strategic group is more intense than the competition outside of that strategic group.