Organic Business Growth
- Organic growth is growth that is driven by internal expansion using reinvested profits or loans
- Organic growth (internal) is usually generated by
- gaining greater market share
- product diversification
- opening a new store
- International expansion
- investing in new technology/production machinery
- Firms will often grow organically to the point where they are in a financial position to integrate with others
- Integration speeds up growth but also creates new challenges
- Integration speeds up growth but also creates new challenges
An Explanation of the Advantages & Disadvantages of Organic Growth
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Disadvantages |
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- Ansoff's Matrix (see sub-topic 3.1.2) is a strategic planning tool that helps businesses identify potential organic growth opportunities by analysing their product and market strategies
The Ansoff Matrix considers the firm's product and market strategy
- The matrix consists of four growth strategies - market penetration, market development, product development, and diversification
Examples of Organic Growth Using Ansoff's Matrix
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Example |
Apple |
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Disney |
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