An Example Of Genetic Growth, Organic And Inorganic Growth

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Expanding a business is key to increasing revenues and market penetration. There are two ways a company can grow, organic and inorganic growth. Organic growth occurs when a company increases sales and gains new customers utilizing the existing business (Davis -
Growing a company by international acquisition, 2008). Organic growth could happen through increased marketing efforts or promotions. For instance, many businesses use online services, such as Groupon or RetailMeNot, to send targeted to promotions to customers in specific areas to drive new or repeat customers into their business. Inorganic growth happens when businesses combine, either through merger or takeover (Davis, 2008). A recent example of inorganic growth would be the drugstore chain CVS taking over the health insurance company Aetna (Reuters,
2017). The case study of Davis included elements of both organic and inorganic growth.
In order to grow, businesses must have resources and opportunities. By acquiring
Berendsen, Davis found the capabilities for growth. Berendsen provided much growth opportunity for Davis as they were already the market leader in their geographic area for providing textile services (Davis, 2008). Further, Davis also gained their experience with the local consumers, networks, and experiences (Davis, 2008). The financial resources came through selling additional shares to existing shareholders and from borrowing the remaining funds from the bank (Davis, 2008). The banks were probably more

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