Selecting the right growth mechanism: The choice between internal development, strategic alliances, and mergers & acquisitions

  • Markus Kreutzer
Part of the Management for Professionals book series (MANAGPROF)


When seeking to realize growth strategies, firms have three choices: internal development, alliances, and mergers & acquisitions. How to choose between these growth mechanisms is, however, not well-understood in practice. Managers seldom sufficiently strategically analyze this critical first step in any growth-related decision process. Instead, many managers commonly base their decision on “gut-feel” or simply follow successful traits. This chapter offers a framework to systematically guide managers in their choice of growth mechanisms. Four sets of factors should be simultaneously considered to decide on when to make, ally, or buy: the environment, the target, the growth strategy, and company-related factors. By systematically analyzing each growth mechanism’s context-specific advantages and disadvantages, firms may avoid mistakes that could not be compensated for in later implementation phases.


Growth Mechanism Internal Development Strategic Alliance Growth Strategy Harvard Business Review 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  • Markus Kreutzer
    • 1
  1. 1.University of St.GallenSt.GallenSwitzerland

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