The inorganic ways to grow refers only to M&A?
Can also state Joint Venture, Partnerships, Collaborations ...?
INORGANIC GROWTH STRATEGIES
Overview of answers
Upvotes
Best answer
Some other ideas...white label, license agreement, outsourcing
Was this answer helpful?
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!
Was this answer helpful?
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.
Was this answer helpful?
Related Cases
Company case by Bain & Company
Style:
Topics:
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).Ac
... (Open whole case)
183.4k
Times solved
Beginner
Difficulty
Company case by Oliver Wyman
Style:
Topics:
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)
105.3k
Times solved
Intermediate
Difficulty
Company case by EY-Parthenon
Style:
Topics:
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)
53.7k
Times solved
Intermediate
Difficulty
Company case by Simon-Kucher & Partners
Style:
Topics:
Cruise company German Sea Tours (GST) is a successful operator of international cruises. GST currently offers several cruise trips, lasting between 5 and 24 days. Additional services can be booked on board (e.g. excursions at each destination, onboard leisure activities). Customers tend to book thei
... (Open whole case)
27.2k
Times solved
Intermediate
Difficulty
Company case by BearingPoint
Topics:
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 directo
... (Open whole case)
26.4k
Times solved
Intermediate
Difficulty