CAPSIM Exam 1 Questions and
Answers 100% Pass
What are the Porter's five forces - ✔✔degree of rivalry,
power of suppliers,
power of buyers,
threat of substitutes,
threat of new entrants
Explain the relationship between each force and industry profitability - ✔✔As the force
increases, industry profitability decreases
What is the relationship between slow industry growth and the intensity of rivalry
among competitor - ✔✔As the industry growth slows down, the intensity of rivalry
goes up
What are strategic groups - ✔✔Set of firms emphasizing similar strategic dimensions to
use a similar strategy
Would the competition within same strategic group be intensified or weakened? -
✔✔Intensifies
Tangible Resources - ✔✔resources that have physical attributes and thus are visible
Ex. of Tangible resources - ✔✔Financial Assets/Cash
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, Physical Assets
Land
Human Resources/People
Organizational Structure
Intangible Resource - ✔✔abstract resources
Ex. of Tangible resources - ✔✔Technology
Innovativeness
Reputation/Goodwill
Brand Equity
Knowledge/Ideas
What are the four criteria of sustainable competitive advantage - ✔✔Valuable, rare,
costly-to-imitate, non-substitutable
What are the primary activities - ✔✔Activities involved in the physical creation of the
product, its marketing and deliveryto consumers, and after-sales service and suppor
what are the support activities - ✔✔Activities which provide the inputs that allow the
primary activities to take place
Suppliers are powerful when:
A. satisfactory substitutes of suppliers are available.
B. they sell a commodity product.
C. they have credible threat of forward integration.
D. they are in a highly fragmented (not concentrated) industry - ✔✔C.
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Answers 100% Pass
What are the Porter's five forces - ✔✔degree of rivalry,
power of suppliers,
power of buyers,
threat of substitutes,
threat of new entrants
Explain the relationship between each force and industry profitability - ✔✔As the force
increases, industry profitability decreases
What is the relationship between slow industry growth and the intensity of rivalry
among competitor - ✔✔As the industry growth slows down, the intensity of rivalry
goes up
What are strategic groups - ✔✔Set of firms emphasizing similar strategic dimensions to
use a similar strategy
Would the competition within same strategic group be intensified or weakened? -
✔✔Intensifies
Tangible Resources - ✔✔resources that have physical attributes and thus are visible
Ex. of Tangible resources - ✔✔Financial Assets/Cash
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 1
, Physical Assets
Land
Human Resources/People
Organizational Structure
Intangible Resource - ✔✔abstract resources
Ex. of Tangible resources - ✔✔Technology
Innovativeness
Reputation/Goodwill
Brand Equity
Knowledge/Ideas
What are the four criteria of sustainable competitive advantage - ✔✔Valuable, rare,
costly-to-imitate, non-substitutable
What are the primary activities - ✔✔Activities involved in the physical creation of the
product, its marketing and deliveryto consumers, and after-sales service and suppor
what are the support activities - ✔✔Activities which provide the inputs that allow the
primary activities to take place
Suppliers are powerful when:
A. satisfactory substitutes of suppliers are available.
B. they sell a commodity product.
C. they have credible threat of forward integration.
D. they are in a highly fragmented (not concentrated) industry - ✔✔C.
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 2
