Organic Growth

Organic Growth

Organic Growth Jonathan Poland

Organic growth refers to an increase in revenue that is generated through a company’s own efforts, such as marketing, innovation, and operational improvements. It is distinct from growth that is obtained through acquisitions or mergers, as these involve acquiring or combining with other companies.

Organic growth is often considered to be a more sustainable form of growth, as it is driven by a company’s own capabilities and resources. However, it can also be more challenging to achieve, as it requires a company to continuously improve and adapt to changing market conditions.

In some cases, a company may appear to be growing due to acquisitions, but its core business may actually be in decline. This can be referred to as “acquisition-driven growth” or “empire building.” While acquisitions can provide a quick boost to a company’s revenue, they can also carry risks such as integration challenges, cultural differences, and financial strains.

To achieve organic growth, it is important for a company to have a clear strategy and to focus on building and improving its core capabilities. This may involve investing in marketing and innovation, optimizing operations, and developing new products and services. By focusing on organic growth, a company can build a strong foundation for long-term success. The following are examples of organic growth.

Branding & Promotion

Increasing market share by promoting products and improving brand awareness.

Innovation & Product Development

Developing products to increase market share or enter new markets.

Sales & Distribution

Improving sales by expanding or improving sales operations and distribution partnerships. For example, a firm might find distribution partners to sell products in a new territory.

Customer Relationships

Improving customer experience to increase customer lifetime value.

Operations

Bottom-line growth can be improved by reducing costs through operational efficiency. Market share can be improved by providing a service that is higher value than the competition. For example, a delivery service that is more reliable than the competition may gain market share.

Learn More
What is Force Majeure? Jonathan Poland

What is Force Majeure?

Force majeure refers to circumstances beyond the control of a party that prevent them from fulfilling their obligations under a…

Brand Legacy Jonathan Poland

Brand Legacy

Brand legacy refers to the strong association that a brand has with a particular product or service. A brand with…

Critical Mass Jonathan Poland

Critical Mass

In economics, critical mass refers to the minimum size a company needs to be in order to effectively compete in…

Figure of Merit Jonathan Poland

Figure of Merit

A figure of merit (FOM) is a value used to evaluate the performance of a system or device. It is…

IT Governance Jonathan Poland

IT Governance

IT Governance refers to the way in which an organization’s executive leadership manages and directs information technology. It is a…

Product Management Jonathan Poland

Product Management

Product management is the practice of managing a portfolio of products throughout their lifecycle from concept to end-of-life. It can…

Integration Risk Jonathan Poland

Integration Risk

Integration risk is a type of risk that arises when two or more entities, such as businesses, systems, or processes,…

Innovation Objectives Jonathan Poland

Innovation Objectives

Innovation objectives are aims to significantly improve something through the use of experimentation, risk-taking, and creativity. These goals tend to…

Risk Management Jonathan Poland

Risk Management

Risk management is the process of identifying, assessing, and prioritizing risks in order to minimize their potential impact on an…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Salesforce Automation Jonathan Poland

Salesforce Automation

Sales force automation is a type of management tool that helps businesses automate and streamline their core sales processes, such…

What is Marketability? Jonathan Poland

What is Marketability?

The marketability of a brand, product, or service refers to its competitiveness within a market. It is the likelihood that…

Product Category Jonathan Poland

Product Category

A product category is a classification of similar or related products or services. These categories are often created by a…

Project Stakeholder Jonathan Poland

Project Stakeholder

A stakeholder is anyone or any group that is impacted by a project. This includes individuals or teams who are…

Risk Awareness Jonathan Poland

Risk Awareness

Risk awareness refers to the extent to which people or organizations are aware of risks and the strategies in place…

Travel Expenses Jonathan Poland

Travel Expenses

Travel expenses refer to the costs associated with traveling for business purposes. This can include expenses such as airfare, hotel…

Examples of Capital Intensive Jonathan Poland

Examples of Capital Intensive

An industry, organization, or activity that is capital intensive requires a large amount of fixed capital, such as buildings and…

Sales Management Jonathan Poland

Sales Management

Sales management is the process of overseeing and directing an organization’s sales team. It involves setting sales goals, analyzing data,…

Corporate Governance Jonathan Poland

Corporate Governance

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It…