In the toy industry, Mattel is one of the world leaders, especially with their line of Barbie dolls. However, it has faced competition from MGA Entertainment, who has produced Bratz dolls since the 1990s. Which of these statements is true about the strategic group in which these companies compete?

By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other. T/F