Growth is a common goal for many organisations. A business may pursue a growth strategy to increase its market share, improve efficiencies through economies of scale or to increase revenue. IMI’s growth strategy focuses on the markets where it is, or has the potential to become, the market leader. It uses innovation and its expertise to enhance its position in these markets.
Inorganic growth is one method used to grow a business. The main sources of inorganic growth come from mergers and acquisitions with other businesses. Another method used to grow a business is organic growth. Organic growth occurs when a business grows by selling more products or services. Ansoff’s matrix outlines four ways this can be achieved. Two of these are product and market development. An example of product development is Nike’s second generation activity-tracking wristband called Fuelband SE. The fact that Nike is adding France, Germany and Japan to its existing Fuelband markets is an example of market development. (BBC, 15th October 2013)