GCAP Exam Questions With 100% Correct Answers 2024

GCAP Exam Questions With 100% Correct Answers 2024 What are the key points of the life cycle of a company? - answer1. Launch - low revenue and high initial start-up costs 2. Growth - sales increase and cash flow positive 3. Shakeout - peak sales; approaching market saturation and decline in profits leads to increase in costs 4. Maturity - thinner profit margins 5. Decline - ultimate costs of competitive advantage What are Michael Porter's Five Forces? - answer1. Rivalry Amongst Existing Competitors 2. Threat of New Entrants 3. Threat of Substitutes 4. Bargaining Power of Suppliers 5. Bargaining Power of Buyers How do you apply Porter's Five Forces? - answer1. Determine the rivalry among competitors in the industry. 2. What barriers to entry exist? 3. What would a substitute look like in the industry? What can they do to market themselves? 4. Do suppliers possess leverage? 5. Is buying power lower or high in the industry? Apply Porter's Five Forces to the Airline Industry - answer1. Rivalry: Numerous airlines; all provide same fixed costs; difficult to leave industry; huge capital required and wait in line to get 737s