Question

2. Briefly discuss how important is strong- vs. weak-tie social capital to the following two startup company: a new restaurant and an e-commerce platform.   

Answer 1

Social capital means the relationship that a business organization build with its customers, and the society as a whole.

Nowadays it is very important to build a strong tie social capital in order to capture large amount of market share. Whether it's a new restaurant or an e-commerce platform, both needs to maintain a strong social capital with the people in the society. This is because profits of the company is dependent on the purchased done by the customer and it is very important for evey business organization to satisfy it's customers and carry it's corporate social responsibility carefully and efficiently.

A new restaurant needs a social capital to attract customers and build trust so that whenever they go out for food, they always come back to the restaurant. It is the responsibility of the restaurant to provide good quality food to the customers ans retain them as long as possible.

An e-commerce commerce firm needs social capital because it cannot directly contact with customers and has to maintain a relationship of trust and loyalty with its customers so that they purchase again and again from the e- commerce website.

Hence, to conclude we can say that both, a restaurant and an e-commerce platform, needs a strong tie social capital.

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