The means by which a business can grow using its own resources (see business strategy). A business will grow by increased market penetration at the expense of its competitors, by new product development, and by market development through seeking new applications and markets for existing products or services. All these means utilize a firm's core competencies and while some may have a relatively short lead time (e.g. market penetration) others, notably product development, can involve significant lead times and development costs. Firms that have a successful record of innovation are usually more successful at internal growth, whereas others favour greater reliance on external growth.
Subjects: Financial Institutions and Services.