Growth and evolution

A method of external growth that involves one company buying a controlling stake in another company

• Lateral integration

• Organic growth

• Acquisition

• Joint venture

When a business acquire a firm operating operating in an earlier stage of production

• Lateral integration

• Forward vertical integration

• Backward vertical integration

• Demerger

Businesses that operate in array of different industries and markets

• Conglomerates

• Mastodonts

• Franchises

• Multinationals

When average unit costs starts to increase as the firm becomes bigger and control becomes harder

• Economies of scale

• Technical discosts

• Diseconomies of scale

• External economies of scale

A high risk strategy that involves selling new products in new markets

• Differentiation

• Globalization

• Diversification

• Blue ocean

When the average unit costs fall as the company grows

• Organic growth

• External economies of scale

• Economies of scale

• Acquisition

Occurs when a company grows by collaborating with; buying or merges with another company

• Organic growth

• Diversification

• Inorganic growth

• Synergy

The term referring to the competitive gains from being the first business to enter a particular market or segment

• First-mover advantage

• Differentiation

• Forward vertical integration

• Strategic alliance

A growth strategy that involves amalgating with a firm at a later stage in production - downstream

• Lateral integration

• Horizontal integration

• Bardward vertical integration

• Forward vertical integration

A growth strategy that combines the resources between two differents firms in a separate legal entity

• Horizontal integration

• Merger

• Joint venture

• Take-over