Distinguish between Internal and External Expansion?
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Internal growth (or organic growth) is when a business expands its own operations by relying on developing its own internal resources and capabilities. Internal growth has a few advantages compared
Internal growth or organic growth is when you use in-house operations to grow a firm. Note that funding for this growth can come from internal funds, debts or additional capital from financial markets, this does not indicate the ‘internal’ reference.
External or inorganic growth is when a firm engages in Mergers and acquisition to grow. This is often faster than building a product, technology, brand, considerable market-share or other competitive advantage from scratch.
Internal growth (or organic growth) is when a business expands its own operations by relying on developing its own internal resources and capabilities. Internal growth has a few advantages compared
Internal growth or organic growth is when you use in-house operations to grow a firm. Note that funding for this growth can come from internal funds, debts or additional capital from financial markets, this does not indicate the ‘internal’ reference.
External or inorganic growth is when a firm engages in Mergers and acquisition to grow. This is often faster than building a product, technology, brand, considerable market-share or other competitive advantage from scratch.
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Difference between internal and external expansion
Explanation:
- As the name itself suggests internal expansion or growth which is attained from within the organization through various measures such as development of new product, entering into new market etc. it is also called Organic growth.
- On the other hand external expansion is attained through mergers, acquisition takeovers etc. it is also known as Inorganic growth. this method is faster than internal method for expansion because the firm can expand it's business easily.
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Internal and external expansion
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