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INORGANIC GROWTH STRATEGIES

brainstorming growth strategy Structure
Recent activity on Aug 19, 2018
3 Answers
3.6 k Views
Anonymous A asked on Aug 18, 2018

The inorganic ways to grow refers only to M&A?

Can also state Joint Venture, Partnerships, Collaborations ...?

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Anonymous B replied on Aug 19, 2018

Some other ideas...white label, license agreement, outsourcing

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Vlad
Expert
replied on Aug 18, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

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!

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Anonymous replied on Aug 18, 2018

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.

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