tech-company, marketing, growthIs the organic growth a way through customer acquisition? I just think it is against pay advertising, and it encourage people to become active user of a product just by creating more and more value in the products.
Is it true?
Yeah, that’s pretty much it.
It doesn’t necessarily mean absolutely no paid advertising, but it does mean avoiding:
big investment (relative to the size of the firm) in customer acquisition,
seeking external investment for the main purpose of customer acquisition,
attempting to grow market share even at the expense of profitability.
So for example, a company which raises a lot of VC money and spends it on getting as many customers as possible as quickly as possible, even to the extent that it’s unprofitable to serve them, with the long-term goal of achieving market-share dominance in their sector, would not be following a strategy of organic growth. A company which adds market share more slowly, depending more on customer referrals, word-of-mouth and building a long-term reputation for high quality, while maintaining short-term profitability, would be using such a strategy.
All content is licensed under CC BY-SA 3.0.