Organic Growth (Edexcel A Level Business)

The pace of growth is manageable

Less risky, as growth is financed by profits and there is industry expertise

Avoids diseconomies of scale

The management knows & understands every part of the business

The pace of growth can be slow and frustrating

Not necessarily able to benefit from economies of scale

Access to finance may be limited

Market Development
Apple expanded into new markets by opening its stores in new countries, such as China and India, and by partnering with telecom providers to sell its products. This helped them to organically increase their market share, sales revenue and profitability

Product Development
Google introduced new products such as Google Drive and Google Maps to complement its search engine and advertising businesses. This helped them to organically increase their market penetration, sales revenue and profitability

Diversification
Disney has diversified into several areas such as theme parks, cruise lines, television networks, and movie studios. The brand strength has helped them to organically increase market penetration in each of these markets resulting in higher sales revenue and profitability