Which is an advantage of external growth?

The advantage of external growth, represented by the option of a quicker way to grow, emphasizes how businesses can rapidly expand their market presence and resources by merging with or acquiring other companies. This strategy allows firms to access new markets, customer bases, and expertise without the prolonged process often associated with internal growth, which typically involves scaling operations, increasing production, or developing new products.

By opting for external growth, businesses can quickly leverage the established infrastructure and market share of the acquired company, resulting in immediate benefits such as increased sales and brand recognition. This can be particularly beneficial in fast-paced industries where time is a critical factor for remaining competitive and relevant. Hence, using external means for growth can be a more efficient way to achieve strategic goals compared to organic growth, which may take longer to realize substantial returns.