As Arsene Wenger takes charge of the club for the 1,000th time in Saturday's Premier League clash with Chelsea, some fans have grown restless at the lack of spending in recent years.
The Emirates Stadium faithful have seen many of their best players leave over the past few seasons, including the likes of Cesc Fabregas, Samir Nasri and Robin van Persie, but Groves believes the good business sense shown by the directors will stand the club in good stead.
"Arsenal will always now be challenging for titles and so they should be as a massive club," Groves, who represented Arsenal more than 200 times, told Perform.
"The club is so well run on a business side - it's self-sustaining and they don't have to rely on a benefactor.
"You look at Manchester City with Sheikh Mansour and Chelsea with Roman Abramovich - if they decide they don't want to do it anymore then those clubs are in trouble, whereas with Arsenal they're actually self-sustaining as a business.
"That's why Arsenal fans have been frustrated, which we understand because they keep seeing their best players leave season after season.
"The club is very stable and with the stadium having been paid for and with all the sponsorships that have already been announced - now is the time for Arsenal to start buying the world-class players.
"Arsenal will be very competitive where they haven't been before to win the Premier League.
"Liverpool are on the resurgence with Brendan Rodgers - they have got their identity back - Chelsea and City have the money and Manchester United are on the decline a little bit.
"Arsenal are going to be competitive now and will be competitive to win the Premier League."
Wenger's side are very much in title contention but Groves conceded that the London club, who are in the FA Cup semi-finals, will have to prove their worth against the teams around them.
"The question mark for Arsenal now is they haven't beaten Chelsea or Manchester City - who you would describe as the big tests," he added.
"That's all about a belief, a mental strength. At the minute, I think Arsenal fans would settle for (just) winning the FA Cup.
"The team needs a winning mentality because there is a massive difference going into huge games hoping you can win them rather than knowing you can."
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