What type of growth strategy may involve mergers and acquisitions?

The chosen answer highlights the nature of external growth strategies, which include methods such as mergers and acquisitions. These strategies focus on expanding a company's operations and market presence by integrating other businesses instead of solely relying on internal resources and capabilities. Mergers and acquisitions allow firms to rapidly enter new markets, acquire new technologies, or increase market share, facilitating growth in ways that organic means cannot match.

In contrast, an organic growth strategy revolves around a company growing through its own resources, such as increasing sales and enhancing product offerings without resorting to external buying or partnerships. A market penetration strategy specifically aims to increase market share in existing markets through tactics such as lowering prices or improving promotional efforts, rather than acquiring or merging with other companies. Lastly, while market expansion involves entering new markets with existing products or services, it does not inherently include the acquisition of other firms, focusing instead on growth through various methods such as geographical expansion or targeting new customer segments. This differentiation makes the option of external growth strategy the most suitable choice for the context of mergers and acquisitions.