organic growth

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  • Organic Growth
    • what is the difference between organic and inorganic growth?
      • organic growth comes from within the business either  from rising customer demand or from the business launching new successful products or outlets
      • inorganic growth comes from outisde the business, either from mergere or takeovers.
        • one example would be Facebook buying WhatsApp. Instead of developing their own rival product and competing in the market with already established and successful Whatsapp, Facebook took the easier [but more expensive] route of buying the business, its products and already existing 450 million customers.
        • normally, inorganic growth is the path taken by business that are weak in innovation but in this case, Facebook's Mark Zuckerberg claimed that WhatsApp was just a great strategic fit
    • methods of growing organically
      • good working conditons for employees
      • innovation, finding ways to improve products
    • advantages of organic growth
      • less risk - expanding what the business is good at
      • less risk - usually financed by the company's won profits
      • still able to maintain current management style, ethics and culture.
      • Less disruptive changes mean workers' efficiency, productivity & morale remain high
      • Easy for the business to manage internal growth
    • disadvantages of organic growth
      • Can take a long time to grow internally
      • Can take a while for the business to adapt to big changes in the market
      • Market size not affected by organic growth
      • If market not growing, business is restricted to increasing its market share or finding a new market to sell products to
      • Businesses might miss out on opportunities for more ambitious growth by only growing internally


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