We distinguish between four types of international expansion strategies, which enable a business to grow without any acquisitions: organic growth, strategic alliance, spin-off venturing, and unit spin-off.
Globalator provides management services for all four types of expansion strategies.
The simplest (not necessarily easiest) growth strategy is expansion through organic growth. Under this growth strategy all growth is achieved from within the existing organization. This is probably the most common growth strategy for growth within an existing market. But businesses might also choose to take their time and grow organically into new markets.
Especially when it comes to entering new markets, forming strategic alliances with other embedded entities can help to overcome the massive learning curve from moving into new territory. As long as the negotiated agreement is flexible enough to accommodate potential changes in strategy for both partners, this route can be a very powerful support for expansion.
A spin-off venture is a start-up formed by an existing business, equipped with specific assets from its parent company. Although the parent company will provide the strategic direction for the spin-off venture, the day-to-day operational management of the spin-off venture is entirely separate. This form of growth is usually chosen in order to enter into new markets without affecting the existing business.
In a unit spin-off an existing business separates a distinct part of its operations to become a separate entity. Similar to a spin-off venture, the strategic direction is provided by the parent company, and the operational management is entirely separate. Unit spin-offs are generally chosen as a form of expansion, when a business realizes that it serves different markets, which would be served better by different organizations.