International Market Growth Analysis

In this essay, we will analyze and speak about a company that searches to expand and grows in foreign markets. The company name is Davis Service Group and consist of the original company and the one that initiates this group - called Sunlight, and another two companies which were added in the second moment, the Elliott and HSS company. All companies were well known and market leader in the United Kingdom. But this wasn't enough anymore for the group as the United Kingdom market "had become a mature market where the prospects of future growth are diminishing" (Davis Service Group, 2008, p.1). For this reason, the company needs to prepare a plan and find strategies on how to best grow overseas. But, how can a company grow and develop

On one side we have "the organic growth which is done by increasing turnover of existing business and on the other side we have the inorganic growth that is done by the acquisition of another business" (Davis Service Group, 2008, p.2). In other words, the organic growth is done internally by increasing the production, customers, sales, and profits, instead, the inorganic growth is done with the help of other companies, by making a joint venture with other companies. Example of organic growth in our case is represented by the Sunlight and Berendsen company, two of the group companies which were able to learn one from the other and increase their customers in the places each of them already perform. By joining their forces, by sharing their resources and ideas and by taking advantages of the structures and customers each of them already has, a plan was put in place and the group could see the profits increase. Another example of organic growth for any company is by promoting their products through marketing advertising which will increase their brand awareness and bring new sales. Enter new markets is another example of organic growth. Let's see also some examples of inorganic growth. In our case, we have the acquisition that Davis Service Group made in 2002 when the Berendsen company was added to join the group. This company was taking it over, which means that the group acquired the majority of shares to take control of the Berendsen. The merger is also another example of inorganic growth. It happens when two companies sign an agreement beneficial for both of them, but the control is not taken by the company that acquired. Is a different type of agreement that concentrates on sharing each of the company resources and best activities ( Davis Service Group,