CS Professional · Strategic Management and Corporate Finance · Competitive Positioning
Which statement about rivalry and strategic groups is most accurate?
Rivalry is generally more intense within a strategic group than between groups, because members follow similar strategies and target similar customers. Firms in different groups still compete to some degree, but less directly, and strategic groups are found in every industry.
- ARivalry is always identical between every pair of firms in the industry regardless of group
- BFirms in different strategic groups never compete in any way
- CRivalry is generally more intense within a strategic group than between groups, because members target similar customers with similar strategiesCorrect
- DStrategic groups exist only in the banking sector
Explanation
Members of a group offer similar value propositions to similar customers, so competition is sharpest within the group. Groups can still overlap and compete at the edges, so 'never compete' is wrong, and groups exist in all industries.
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