External growth, also known as inorganic growth, is growth achieved through external actions like takeovers or mergers. This type of growth is often referred to as integration. The other type of growth is known as organic or internal growth, and involves growing through investment in the current business offerings.
External growth can be classified as follows:
For example, Vodafone acquired Hutch Essar.
An example, Sun Group acquired SpiceJet in 2008
For example:. An oil company acquiring a service station company.
For example: A retailer merging with a firm producing specific products
Hence, this concludes the definition of External Growth along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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