ORGANIC GROWTH

ORGANIC GROWTH

1. INTERNAL

   • INCREASING OUTPUT
     • Increase quantity of product being produced
       • Introducing more efficient technology
       • Building more factory space
       • Taking on more workers
       • This can be a quick way of expanding by
         • Employing more workers if capacity allows it
         • Rather than building a new factory as this can be time consuming and will slow down growth
   • GAINING NEW CUSTOMERS
     • A business might gain more customers in a number of ways
       • Reducing the prices of its products or service
       • Opening shops in new places
       • Better Marketing
   • DEVELOPING NEW PRODUCTS
     • New products and services that appeal to a wider range of customers
       • E.g. Apple has grown from first producing computers to introducing iPod, iPad, iPhone and the Apple watch
   • INCREASING MARKET SHARE
     • This means that the business has a greater percentage share of the market.
       • E.g. if 1000 tables were sold in a country, and a business sold 100 of those tables, it would have 10 per cent share of the market. If the total number of tables sold rose from 1000 to 2000, the business d have to sell more than 200 tables (10 per cent of 2000) if it were to increase its market share.
         • A business might take over a competitor to help achieve higher market share