Final answer:
High-profit performance retailers must focus on industry competition due to the effects of globalization and advances in communications and information technology, which increase competition from various regions and countries.
Step-by-step explanation:
High-profit performance retailers must always be on the offensive in their study of the changing competitive environment, especially its industry competition. The forces of globalization and new communications and information technology have significantly increased the competitive landscape. This expansion in technology allows consumers to purchase goods from all over the country or the world, heightening the competitive pressure on local businesses. Similarly, in markets for business supplies, the emergence of business-to-business websites makes it possible for buyers and suppliers globally to find each other, thereby increasing competitive pressures even further.
Given these shifts towards globalization and technological advancements, retailers must consider not only their local or nationwide competitors but must also focus on the broader industry landscape, which spans worldwide. With the advent of the internet and the consequent global market access, retailers are no longer solely competing with businesses in close proximity but rather with competitors from different regions and countries. As such, monitoring industry competition becomes critical for high-profit performance retailers to maintain and improve their market position.