Internal growth (or organic growth) is when a business expands its own operations by relying on developing its own internal resources and capabilities. Companies can decide to grow organically by expanding current operations and businesses or by starting new businesses from scratch (e.g. greenfield investment)

External growth (or inorganic growth) strategies are about increasing output or business reach with the aid of resources and capabilities that are not internally developed by the company itself. Rather, these resources are obtained through the merger with/acquisition of or partnership with other companies. External growth strategies can therefore be divided between M&A (Mergers and Acquisitions) strategies and Strategic Alliance strategies (e.g. joint ventures).

A mature company often engages in both types of growth. The level of each type of growth also depends on the industry, anti-trust regulations, access to markets etc.

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