It still remains unclear to a lot of business leaders on the right mix between acquisitions and organic growth in the corporate strategy. While addressing this question, one needs to start by understanding the target customer and finding ways to stretch this boundary. Then ways need to be found to add to the value proposition. One also needs to address how bets to commercialize the existing capabilities. Facebook for example scaled up steadily within colleges before opening it to the general public. Google keeps updating its Chrome, Maps, Home and Gmail services to generate increased demand for its search engine, that is still the core money-churner. Microsoft meanwhile grew by simply adding services or tweaking its existing ones right from the MS-DOS era. The subscription-model is now getting really popular and relevant. A lot of companies grow by adding newer markets, as We Work is doing at a rapid pace at present. Thus, strategists need to first weigh in the relative merits of organic and acquired growth.

Source:https://www.strategy-business.com/blog/Strategy-Talk-Whats-the-Right-Mix-of-Organic-Growth-and-Acquisitions?gko=5db3c

Uploaded Date:23 October 2018