Let us imagine there is a “bhelpuri Wala” who has a stall in a famous marketplace. He has been in this business for a long time and has quite a reputation. He sells “Bhel” under the brand “Crispy Snacks.”
With time his business starts growing. He soon has money to stock other products. So, he introduces Sev Puri, Dahi Puri, Chaat etc. under the “Crispy Snacks” banner.
The addition of new products gives further impetus to his business. This kind of growth is what we typically call, “Organic” growth.
It is growth that comes from within the same business.
As time goes by and his business grows further, he starts accumulating a lot of money. With all the money at his disposal, he gets more ambitious and wants to invest the money in his business to make it grow even faster. But he realizes that even if he invests the money, it would not be possible to grow the business within a short span. So, he starts to think of another approach to attain quick growth.
He hits upon another idea. He purchases four new snack shops in the same area lock stock and barrel and brings them all under the “Crispy Snacks” banner. Such growth which can be purchased, and which is essentially from the outside is known as “inorganic” growth.