IB CAPSIM EXAM 2 UPDATED QUESTIONS AND
ANSWERS
Step 1: Analyze Market Segments and Competitors - CORRECT ANSWER✅✅✅-Identify Target
Segments: examine different market segments (high tech vs low tech, traditional vs performance vs size)
to determine where your products can best compete
-Competitive Benchmarking: asses competitors strengths, weaknesses, pricing strategies, product
features, and market shares to identify opportunities and threats
Step 2: Set Clear Objectives and Strategy - CORRECT ANSWER✅✅✅-define your bushiness strategy:
decide whether to pursue cost leadership, differentiation or a focused strategy based on your market
and competitive analysis
-Establish Goals: set specific, measurable objectives for revenue, market share, profitability, R&D
advancements and other key performance indicators
step 3: Initial Product Development and R&D - CORRECT ANSWER✅✅✅- Evaluate Product Lines:
assess the current performance, size and cost of your products. identify which products need
improvement or repositioning
- Plan R&D Investments: Allocate resources to enhance product features, reduce costs, or develop new
products that meet market demands. Ensure a balance to stay competitive without overextending
financially
step 4: Marketing and Sales Strategy - CORRECT ANSWER✅✅✅-Set Pricing Strategies: determine
initial pricing based on production costs, competitor prices and perceived value
Price Elasticity of Demand - CORRECT ANSWER✅✅✅Helps you understand how changes in your
products price can affect the number of units your customers buy. This allows you to make smarter
pricing decisions to maximize your profits and stay competitive
-measures how sensitive your customers are to price changes. It tells you whether increasing or
decreasing your products price will lead to a significant change in sales volume
ANSWERS
Step 1: Analyze Market Segments and Competitors - CORRECT ANSWER✅✅✅-Identify Target
Segments: examine different market segments (high tech vs low tech, traditional vs performance vs size)
to determine where your products can best compete
-Competitive Benchmarking: asses competitors strengths, weaknesses, pricing strategies, product
features, and market shares to identify opportunities and threats
Step 2: Set Clear Objectives and Strategy - CORRECT ANSWER✅✅✅-define your bushiness strategy:
decide whether to pursue cost leadership, differentiation or a focused strategy based on your market
and competitive analysis
-Establish Goals: set specific, measurable objectives for revenue, market share, profitability, R&D
advancements and other key performance indicators
step 3: Initial Product Development and R&D - CORRECT ANSWER✅✅✅- Evaluate Product Lines:
assess the current performance, size and cost of your products. identify which products need
improvement or repositioning
- Plan R&D Investments: Allocate resources to enhance product features, reduce costs, or develop new
products that meet market demands. Ensure a balance to stay competitive without overextending
financially
step 4: Marketing and Sales Strategy - CORRECT ANSWER✅✅✅-Set Pricing Strategies: determine
initial pricing based on production costs, competitor prices and perceived value
Price Elasticity of Demand - CORRECT ANSWER✅✅✅Helps you understand how changes in your
products price can affect the number of units your customers buy. This allows you to make smarter
pricing decisions to maximize your profits and stay competitive
-measures how sensitive your customers are to price changes. It tells you whether increasing or
decreasing your products price will lead to a significant change in sales volume
