Inorganic Growth Vs Organic Growth

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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. A merger is where two firms join up by agreement and get to share resources while a takeover is where a company is bought by
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However, since the mergers, takeovers, and acquisition are not profit generating to a company, they are classified as inorganic.
Example of organic growth
In a given year, Company X used 7% of its annual revenue in advertising alone, in comparison to
Company Y which invested only 5% of its annual revenue in advertising its product. Company X also had an impact in every big public event in the following years and their sales went over

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