According to Growing a company by international acquisition (n.d.) there are two major ways of growing a business: organic or inorganic. The decision which one is the best solution for a given company depends on the market, trends and the resources of the company. In most cases organic growth is constant and an ongoing process while the inorganic growth happens when the company decides to widen its options. Organic growth happens when a company is using its own resources, opportunities and advantages to improve profitability. Usually this happens by one or more combined: - Expanding sales (inbound, outbound) activities to reach more customers - New product launch to increase market share - Marketing activities
This is an opportunity for Wal-Mart to expand its grocery store and increase its income from this field. ii. Growth of retail market in emerging markets: the growth of retail markets in emerging markets including Mexico, Brazil, India, and China offer a great opportunity for Wal-Mart to increase its presence in these countries and sustain future growth. iii. Growth in internet retailing and online shopping: since Wal-Mart is the biggest offline retailer, it can use this opportunity as a way of expanding its presence in online realm to reach more customers and increase its revenue.
Also, the internal structure of Alibaba viz its division in 1688.com, Taobao.com, Tmall.com,Aliexpress.com etc help in efficient operations, as well as cost reduction since this, helps them to serve specific segments of customers. Alibaba – Going Global In order for its sustained growth, Alibaba is increasing its reach of operations. It is expanding into Asia Pacific region, Americas, and Europe. The customers of these regions have different demands. Hence Alibaba has taken following steps to help its global growth: a.
Promoting Tesco may increase sales in existing supermarkets and attract new customers. On the other hand, using the virtual stores to increase market share in online grocery retailing may actually cause sales to divert from the supermarket purchases to online purchases. This brings us
According to Mark Gottfredson (2005) in Strategic Sourcing: From Periphery to the Core, there are many companies have transformed its businesses through means of globalization and technologies, which eventually increase their competitiveness level in the industry. Saudi Aramco shall focus on its core strategic capabilities, which differentiate its uniqueness and empower it to stand out from the crowd. Through the transformation, Saudi Aramco is in need to elevate its sourcing strategy that will support its ability to control and make the most of its critical
Starbucks is utilizing effective marketing due to long term grow for company. The company is depending on retail expansion with innovation product and services to achieve their commitment. They will target the different kinds of market segments such as, consumer market segmentation and international market segmentation. Different ways are used to segment market depend on customer preferences and attitudes. For the consumer market segment,
The two major ways in which a company can grow Successful companies continue to seek better profitability for their investors. There are two major ways in which a company can grow – Organic and Inorganic. Organic growth – this is when a company increase its revenue by simply improving its internal capabilities. As marketing and operations become efficient, the company will generate more revenue and ensures growth. By positioning a business as market leader, turnover can increase rapidly and Davis Service Group made use of Organic growth.
Many companies hope to grow and expand into new broader markets where they can compete with the top companies in the industry of interest. However, every such company has to be ready to commit and follow a growth strategy for the growth of the company over time. A company can either grow in an organic or inorganic manner. Organic growth is where a business expands through increasing the amount of output, increasing sales, development and release of new products, and expansion of the customer base being served by their products, and therefore, improving profitability of the business. On the other hand, inorganic growth is where a business expands through acquisitions, mergers, or takeovers.
In this world in constant development and with the globalization trend, businesses have faced the need to expand or become stagnant. With globalization, businesses have the opportunity to carry out this expansion outside their country borders. Businesses have become aware of the huge growth opportunities they can find abroad, but they have also learned that in order to benefit from these opportunities they need to carefully plan an expansion strategy. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing There are two strategies that companies can follow in order to grow: organic growth strategy or inorganic growth strategy.
External expansion strategies are now hitherto an integral part of the globalization and internationalization movement by enterprises. Foreign markets are now contributing to significant growth paths of businesses in terms of their bottom line. Innovation and best practices are now easier to capitalize or access through simply acquiring foreign operations of relevant companies to their business. There are two ways in which a company can growth namely organic and inorganic. Organic growth is a strategy where an enterprise develops by making use of its current business base and leverage.