Chapter 3
Organic Growth versus Merger and Acquisition
Companies growing their global supply chains have many options in planning their growth strategically; these options fall into two primary camps: through merger and acquisition (M&A) and through organic growth. This chapter reviews the strategic pros and cons in both areas and creates a planned-out thought process on how to move ahead in both areas.
Organic Growth
Most companies start outgrowing but directly capturing business themselves. In the early years, growth is based upon preexisting relationships leveraged into clients.
Organic growth can make its mark in a number of ways:
- Lower costs
- Relationship driven
- Unique services
- Controlled or protected capabilities
- Hiring key personnel
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