Question

How do venture capitalists differ from angel investors?

Why is it difficult to categorize e commerce business model?

How have the unique features of e commerce technology changed industry structure in travel business?

Answer 1

Pl rate if it helped.

1 Angel Investors

• They are mostly individual investors
• They may invest in early-stage/ start-up businesses
• Investment amounts is less than the venture capitalists
• Will demand lesser commitment and business control from the entrepreneur and his business

Venture Capitals

• A company or business and not an individual
• Mostly reluctant to invest in start-ups
• Investment amounts is towards larger size
• Requires more commitment (maybe a board seat) and business control from the business
• Diligence process will be lengthy

Both of them are investors to a business who will have shares in the profit and may have control on the everyday business operations. On the other hand, commercial banks will be money lenders for a business and have minimum control under normal business operations. The lenders will be satisfied when the business pays the interest on time i.e. profit sharing is not required.

2 It is difficult to categorize e-commerce business models because the number of models is limited only by the human imagination, and new business models are being invented daily. Even within the broad-based generic types, there are overlaps, and fundamentally similar business models may appear in more than one. The type of e-commerce technology used can also affect the classification of a business model. Also, some companies may employ multiple business models. For example, e-Bay is essentially a C2C marketplace, but also functions as a B2C market maker, and in addition, has an m-commerce business model.

3 E-commerce expanded the market and created new marketing channels. Because of the Ubiquity of e-commerce, the operating cost is decreased, which enables more competition on global level. Interactivity, personalization and customization is used to offer better services to people and cut the cost for regular salesforce. This also cut operational cost. The richness allows the company to develop better post-sales strategies and attract more consumers. The information density allows for consumers to get cheaper prices and avoid paying more for what they get. And the social technology is perfect for marketing and advertising to big group of people. And the best part is that consumers can get that all that from anywhere in the world.