Final answer:
The statement is true because as firms within the same strategic group have comparable business strategies, leading to higher competition among them. Evidence of serious competition includes price wars and rapid innovation, seen in industries like smartphones and airlines. Globalization and advancements in technology also increase competition globally.
Step-by-step explanation:
The statement that competition tends to be more intense among firms within a strategic group than between strategic groups is true. A strategic group is a set of companies within an industry that pursue similar strategies with similar resources. Because firms within the same strategic group have comparable strategies and compete in the same market spaces, they are direct rivals and thus competition among them is fierce. This can be evidenced through aggressive marketing, pricing strategies, innovation races, and customer service improvements as they vie for the same customer base.
Examples of evidence of serious competition can include price wars, rapid innovation, high levels of advertising, and aggressive promotional campaigns. Two highly competitive industries are the smartphone industry and the airline industry. In both cases, firms continuously strive to outdo each other through technological advances, price discounts, and expanded service offerings.
Furthermore, the forces of globalization and advancements in communication and information technology have expanded competition beyond local and regional markets, pitting firms against international contenders and heightening the overall competitive landscape.