The two major ways in which a company can grow are inorganic growth and organic growth. Inorganic growth includes merger and takeover. Merger is that two companies share their resources and combined with advantages to be competitive in the market. For example, one company’s advantage is TV production and the other company is good at internet devices. Then the two company merger and they combined into those advantages and come out with a new model of TV which is equipped with the internet function. Thus people could use this TV to watch the online videos.
For organic growth, one company just grow basing on the original way which allow more investment but not on other area. For example, when the investment all over the world is not so profitable, enterprises chose to invest on their existing …show more content…
Davis Service Group is mature on the existing business and the model is successful. The European Union market has a great potential market where goods and services could flow freely. Besides, Euro is widely used and English is the most popular language. Thus there is little barrier on the expansion of Davis Service Group to do the horizontal growth. To do the horizontal growth, large amount of customer base could be used by Davis Service Group which is the direct way for it to make profit, which means acquire a company with the same business is obtaining the customers. On the other side, organic growth will cost Davis Service Group so much time and money, which means earning less profit and even not successful in the new market. Therefore, choosing inorganic growth is the most profitable way for Davis Service Group to enter into the Euro