Growth and evolution

A method of external growth that involves taking a controlling interest in another company

• Diversification

• Economies of scale

• Franchise

• Acquisition

A high-risk growth strategy that involves new markets and new products

• Differentiation

• Diversification

• Internal growth

• Specialization

The competitive gains a firm gets from being the first business in a particular market of segment

• Premium perception

• Differentiation

• Strategic alliance

• First-mover advantage

Integration method that refers to mergers or acquisitions between firms that have operate in similar markets but are not competitors

• Vertical integration

• Horizontal integration

• Synergy

• Lateral integration

A category of economies of scale that happens internally in a firm as it grows

• Scale of merger

• Internal economies of scale

• Side economies of scale

• External economies of scale

When larger firms gain cost savings in their purchasing

• Risk bearing economies of scale

• Marketing economies of scale

• Technical economies of scale

• Purchasing economies of scale

Are formed when two or more firms work together without forming a new legal entity

• Joint Venture

• Public limited company (Plc)

• Strategic alliances

• Ansoff's matrix

The most efficient scale of a firm when average cost are minimized

• Optimal level of output

• Capacity utilization

• Break-even level

• Short-run average cost

Firms that provide a large diversified range of goods and services to the market place

• Joint Ventures

• Conglomerates

• Public limited companies (Plc)

• Franchise

The cost disadvantages of growth

• Diseconomies of scale

• Financial economies of scale

• External economies of scale

• Inorganic growth