©THESTAR 2025 ALL RIGHTS RESERVED 11:44 AM A+
CAPSIM Exam Questions And Answers
|Latest 2025 | Guaranteed Pass
What are the Porter's five forces - Answer✔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 - Answer✔As the force
increases, industry profitability decreases
What is the relationship between slow industry growth and the intensity of rivalry among
competitor - Answer✔As the industry growth slows down, the intensity of rivalry goes up
What are strategic groups - Answer✔Set of firms emphasizing similar strategic dimensions to
use a similar strategy
Would the competition within same strategic group be intensified or weakened? -
Answer✔Intensifies
Tangible Resources - Answer✔resources that have physical attributes and thus are visible
Ex. of Tangible resources - Answer✔Financial Assets/Cash
Physical Assets
Land
Human Resources/People
Organizational Structure
1|Page
, ©THESTAR 2025 ALL RIGHTS RESERVED 11:44 AM A+
Intangible Resource - Answer✔abstract resources
Ex. of Tangible resources - Answer✔Technology
Innovativeness
Reputation/Goodwill
Brand Equity
Knowledge/Ideas
What are the four criteria of sustainable competitive advantage - Answer✔Valuable, rare,
costly-to-imitate, non-substitutable
What are the primary activities - Answer✔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 - Answer✔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 - Answer✔C.
9. Customers tend to exhibit a powerful force on competition in the industry if:
A. There are a large number of customers that buy the product
B. The customers make low volume purchase
C. Purchases customers make from the industry are large relative to the amount spent for items
from other industries
D. The sellers' products are highly differentiated
E. The customers are earning high profit - Answer✔C. Purchases customers make from the
industry are large relative to the amount spent for items from other industries
10. Switching costs refer to the
A. cost to a producer to exchange equipment in a facility when new technologiesemerge.
B. cost of changing the firm's strategic group.
2|Page
CAPSIM Exam Questions And Answers
|Latest 2025 | Guaranteed Pass
What are the Porter's five forces - Answer✔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 - Answer✔As the force
increases, industry profitability decreases
What is the relationship between slow industry growth and the intensity of rivalry among
competitor - Answer✔As the industry growth slows down, the intensity of rivalry goes up
What are strategic groups - Answer✔Set of firms emphasizing similar strategic dimensions to
use a similar strategy
Would the competition within same strategic group be intensified or weakened? -
Answer✔Intensifies
Tangible Resources - Answer✔resources that have physical attributes and thus are visible
Ex. of Tangible resources - Answer✔Financial Assets/Cash
Physical Assets
Land
Human Resources/People
Organizational Structure
1|Page
, ©THESTAR 2025 ALL RIGHTS RESERVED 11:44 AM A+
Intangible Resource - Answer✔abstract resources
Ex. of Tangible resources - Answer✔Technology
Innovativeness
Reputation/Goodwill
Brand Equity
Knowledge/Ideas
What are the four criteria of sustainable competitive advantage - Answer✔Valuable, rare,
costly-to-imitate, non-substitutable
What are the primary activities - Answer✔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 - Answer✔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 - Answer✔C.
9. Customers tend to exhibit a powerful force on competition in the industry if:
A. There are a large number of customers that buy the product
B. The customers make low volume purchase
C. Purchases customers make from the industry are large relative to the amount spent for items
from other industries
D. The sellers' products are highly differentiated
E. The customers are earning high profit - Answer✔C. Purchases customers make from the
industry are large relative to the amount spent for items from other industries
10. Switching costs refer to the
A. cost to a producer to exchange equipment in a facility when new technologiesemerge.
B. cost of changing the firm's strategic group.
2|Page
