GCAP COMPREHENSIVE EXAM 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ What are Michael Porter's Five Forces? Answer: 1. 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? Answer: 1. 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 Answer: 1. Rivalry:
Numerous airlines; all provide same fixed costs; difficult to leave
industry; huge capital required and wait in line to get 737s
, 2. New Entrance: Threat is MEDIUM; Lots of capital required; licensing
FAA; flight routes; financing is easily obtained; TRULY ALL
DEPENDENT ON ACCESS TO CAPITAL
3. Substitutes: US lags behind; high-speed trains; hyper-loop technology
4. Suppliers: Have strong leverage; Boeing and Airbus are major
players; fuel
5. Buying Power: HIGH; Expedia for price comparisons; brand loyalty
is low
◉ What is the Chasm Bell Curve (Law of Diffusion)? Answer: The
companies must cross the chasm to survive.
1. Innovators
2. Early Adopters
3. Early Majority
4. Late Majority
5. Laggards
◉ Capital Markets Answer: Connect institutional and retail with those in
need of capital such as firms, businesses, or governments
◉ Primary Markets Answer: Selling stocks/bonds as an initial public
offering (IPO) or on stock exchange
QUESTIONS WITH SOLUTIONS GRADED A+
◉ What are Michael Porter's Five Forces? Answer: 1. 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? Answer: 1. 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 Answer: 1. Rivalry:
Numerous airlines; all provide same fixed costs; difficult to leave
industry; huge capital required and wait in line to get 737s
, 2. New Entrance: Threat is MEDIUM; Lots of capital required; licensing
FAA; flight routes; financing is easily obtained; TRULY ALL
DEPENDENT ON ACCESS TO CAPITAL
3. Substitutes: US lags behind; high-speed trains; hyper-loop technology
4. Suppliers: Have strong leverage; Boeing and Airbus are major
players; fuel
5. Buying Power: HIGH; Expedia for price comparisons; brand loyalty
is low
◉ What is the Chasm Bell Curve (Law of Diffusion)? Answer: The
companies must cross the chasm to survive.
1. Innovators
2. Early Adopters
3. Early Majority
4. Late Majority
5. Laggards
◉ Capital Markets Answer: Connect institutional and retail with those in
need of capital such as firms, businesses, or governments
◉ Primary Markets Answer: Selling stocks/bonds as an initial public
offering (IPO) or on stock exchange
