Organic Growth Case Study

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.

An example is when Sunlight and Berendsen used the best of both to increase customer acquisition and therefore generate more revenue. Sunlight and Berendsen were engaging as market leaders in organic growth.

Political Stability in the UAE is another reason why Dubai is a good choice with the huge expatriate population. Dubai will make a great target market for the linen supply business.

In spite of the possibilities of expansion, there are factors that might discourage this choice. If the country become political unstable, this would discourage this choice. Since the attributes of current clients are similar to the target market, this would encourage this choice.

Conclusion

Every business is setup to grow, but not all businesses will grow. Davis Service Group knew exactly what they wanted to accomplish. As a results the sold part of their business and kept the winning business. It was easier to expand what was profitable and to transfer the expertise into the acquired business to make it even more profitable.

References:

Davis, (n.d). Growing a Company by International Acquisition. Retrieved 21 March 2018, from https://my.uopeople.edu/pluginfile.php/244175/mod_workshop/instructauthors/UNIT%207%20-%20Case%20Study%20-%20dsgplc_13_full.pdf Just Landed (n.d.). Languages spoken in Dubai. Retrieved 21 March 2018, from