Does competition tends to be more intense among firms within a strategic group than between strategic groups?

Yes, competition tends to be more intense among firms within a strategic group than between strategic groups. This is because firms in the same strategic group often pursue similar business models, target the same customer segments, and offer comparable products or services, leading to direct rivalry. In contrast, firms in different strategic groups may operate with distinct strategies, pricing, and market focuses, which reduces the intensity of competition between them. Thus, intra-group competition is generally more fierce due to the closer alignment in their strategic approaches.