The inorganic ways to grow refers only to M&A?
Can also state Joint Venture, Partnerships, Collaborations ...?
The inorganic ways to grow refers only to M&A?
Can also state Joint Venture, Partnerships, Collaborations ...?
INORGANIC GROWTH STRATEGIES
3 answers
Some other ideas...white label, license agreement, outsourcing
Hi,
The criteria for inorganic growth is if the deal has the equity component. Simple marketing partnerships are the means of organic growth.
Inorganic growth can be done in two ways:
- Vertical - M&A, JV, etc with suppliers / distributors / retailers
- Horizontal - M&A, JV, etc with the players in the same market
Best!
Organic growth just means growing the company's capitalization by using its internal resources that sits either above the line (COGS) or below (Ops) in the P&L. Inorganic is growing the capitalization by all other means, usually M&A, JV, and partnerships that involve some form of revenue share. I wouldn't call all partnerships "inorganic", especially channel partnerships where the channel is a VAR / value added reseller.
Related BootCamp article(s)
CAGR - Compound Annual Growth Rate
Learn everything you need to know about CAGR (Compound Annual Growth Rate) for your case interview ✔ Definition ✔ Formula ✔ Examples ✔ Applications
Growth Strategy
Growth questions are among the most common questions in consulting case interviews: gather the necessary Information about volume and price to find the best growth lever
Related case(s)
LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case
Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case
A leading online real estate marketplace in Germany – your-new-home.com – is struggling with stagnating sales after many years of high growth rates. In a preliminary project with EY-Parthenon, the market environment has already been examined in detail – competitors, new entrants, customer needs, etc ... Open whole case
Dein Mandant ist Vorstandsvorsitzender einer international aufgestellten Agrarholding. Deine Aufgabe ist es, den Mandanten bei der Ursachenforschung für die aktuelle Krise in einer der Tochtergesellschaften zu unterstützen, kurzfristige Maßnahmen für einen unvorhergesehenen Liquiditätsengpass zu ent ... Open whole case
A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing direc ... Open whole case
CoachingPlus 5 
