Development vs. Acquisition — What's the Difference?
By Urooj Arif & Maham Liaqat — Updated on April 30, 2024
Development involves creating something internally, often requiring time and ongoing investment, while acquisition entails buying an existing entity or asset, offering immediate resources or capabilities.
Difference Between Development and Acquisition
Table of Contents
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Key Differences
Development typically refers to the process of organically growing or enhancing a business, product, or technology from the ground up, using internal resources and expertise. In contrast, acquisition involves purchasing another company or asset, thus integrating external resources and capabilities into one's existing operations.
Development usually demands a significant amount of time and capital investment, with gradual progress and iterative improvements. Meanwhile, acquisition allows for a quicker expansion or diversification, instantly adding new elements to a business’s portfolio.
In terms of risk, development poses uncertainties related to the time and resources invested without guaranteed success. On the other hand, acquisition also carries risks, primarily associated with integration issues, cultural clashes, and sometimes, substantial financial burden.
The strategic intent behind development is often innovation and long-term growth, focusing on creating unique products or services. Conversely, acquisitions are typically driven by the desire to quickly gain market share, eliminate competition, or acquire new technologies.
From a control perspective, development allows an organization to retain more control over the pace and direction of growth. In contrast, acquisitions can sometimes lead to diluted control, especially if merging with large or complex entities.
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Comparison Chart
Focus
Internal creation and innovation
Buying external companies or assets
Time Frame
Long-term, gradual
Immediate, can be rapid
Investment
Continuous, often significant
One-time, often very large
Risk
Uncertain outcomes, resource-intensive
Integration, cultural challenges
Strategic Intent
Innovation, organic growth
Market expansion, quick resource gain
Compare with Definitions
Development
In business, refers to enhancing operational capacities or entering new markets.
The firm focused on the development of its digital marketing strategies.
Acquisition
In art, obtaining new works to add to a collection.
The museum's new acquisition includes a rare Impressionist painting.
Development
The act of improving an existing product or creating a new one from scratch.
The company's development of a new electric vehicle took three years.
Acquisition
The act of purchasing another company or business asset.
Their latest acquisition significantly expanded their market reach.
Development
In software, the creation and updating of applications and systems.
The team is in the final stages of the software development cycle.
Acquisition
In military terms, the procurement of new technology or equipment.
The recent acquisition of advanced drones enhances their surveillance capabilities.
Development
In real estate, the construction and sale of new properties.
The development of the new residential area will include parks and schools.
Acquisition
In language learning, the process of naturally obtaining language ability.
His acquisition of Spanish was aided by living in Madrid for a year.
Development
Personal and professional growth or advancement.
Her development in the company has been rapid and impressive.
Acquisition
In legal terms, the obtaining of rights or property through purchase.
The acquisition of the property was finalized last Thursday.
Development
The process of developing or being developed
The paintings provide evidence of his artistic development
She traces the development of the novel
Acquisition
An asset or object bought or obtained, typically by a library or museum
The legacy will be used for new acquisitions
Development
An event constituting a new stage in a changing situation
I don't think there have been any new developments since yesterday
Acquisition
The learning or developing of a skill, habit, or quality
The acquisition of management skills
Development
The process of converting land to a new purpose by constructing buildings or making use of its resources
Land suitable for development
Acquisition
The act of acquiring.
Development
The process of starting to be affected by an ailment or feeling
The development of brittle bones
Acquisition
Something acquired or gained
Added two new acquisitions to my library.
Development
The process of treating photographic film with chemicals to make a visible image
Agitation is carried out while a film is processed to ensure even development
Acquisition
The act or process of acquiring.
The acquisition of sports equipment can be fun in itself.
Development
The process of bringing one's pieces into play in the opening phase of a game
I sought to take advantage of Black's defective development
Acquisition
The thing acquired or gained; a gain.
That graphite tennis racquet is quite an acquisition.
Development
The application of techniques or technology to the production of new goods or services.
Acquisition
(computing) The process of sampling signals that measure real world physical conditions and converting these signals into digital numeric values that can be manipulated by a computer.
Development
The business of constructing buildings or otherwise altering land for new uses.
Acquisition
The act or process of acquiring.
The acquisition or loss of a province.
Development
A significant event, occurrence, or change
A news story covering the latest developments in the scandal.
Acquisition
The purchase of one commercial enterprise by another, whether for cash, or in a trade of stock of the purchasing company for that of the purchased company.
Development
A group of dwellings built by the same contractor
Bought a condo in a new development built by the river.
Acquisition
The thing acquired or gained; an acquirement; a gain; as, learning is an acquisition.
Development
The organized activity of soliciting donations or grants; fundraising.
Acquisition
The act of contracting or assuming or acquiring possession of something;
The acquisition of wealth
The acquisition of one company by another
Development
Elaboration of a theme with rhythmic and harmonic variations.
Acquisition
Something acquired;
A recent acquisition by the museum
Development
The central section of a movement in sonata form, in which the theme is elaborated and explored.
Acquisition
The cognitive process of acquiring skill or knowledge;
The child's acquisition of language
Development
(uncountable) The process of developing; growth, directed change.
The development of this story has been slow.
Acquisition
An ability that has been acquired by training
Development
The process by which a mature multicellular organism or part of an organism is produced by the addition of new cells.
The organism has reached a crucial stage in its development.
Development
(countable) Something which has developed.
Our news team brings you the latest developments.
Development
A project consisting of one or more commercial or residential buildings.
Development
The building of such a project.
Development
(uncountable) The application of new ideas to practical problems (cf. research).
Our development department has produced three new adhesives this year.
Development
The active placement of the pieces, or the process of achieving it.
White's development is good, but black's has been hampered by the pawn on e5.
Development
(music) The process by in which previous material is transformed and restated.
Development
(music) The second section of a piece of music in sonata form, in which the original theme is revisited in altered and varying form.
Development
(math) The expression of a function in the form of a series.
Development
The act of developing or disclosing that which is unknown; a gradual unfolding process by which anything is developed, as a plan or method, or an image upon a photographic plate; gradual advancement or growth through a series of progressive changes; also, the result of developing, or a developed state.
A new development of imagination, taste, and poetry.
Development
The series of changes which animal and vegetable organisms undergo in their passage from the embryonic state to maturity, from a lower to a higher state of organization.
Development
The act or process of changing or expanding an expression into another of equivalent value or meaning.
Development
The elaboration of a theme or subject; the unfolding of a musical idea; the evolution of a whole piece or movement from a leading theme or motive.
Development
A tract of land on which a number of buildings have been constructed; - especially used for tract on which from two to hundreds of houses have been constructed by a commercial developer{4} for sale to individuals.
Development
Act of improving by expanding or enlarging or refining;
He congratulated them on their development of a plan to meet the emergency
They funded research and development
Development
A process in which something passes by degrees to a different stage (especially a more advanced or mature stage);
The development of his ideas took many years
The evolution of Greek civilization
The slow development of her skill as a writer
Development
A recent event that has some relevance for the present situation;
Recent developments in Iraq
What a revolting development!
Development
The act of making some area of land or water more profitable or productive or useful;
The development of Alaskan resources
The exploitation of copper deposits
Development
A district that has been developed to serve some purpose;
Such land is practical for small park developments
Development
A state in which things are improving; the result of developing (as in the early part of a game of chess);
After he saw the latest development he changed his mind and became a supporter
In chess your should take care of your development before moving your queen
Development
(biology) the process of an individual organism growing organically; a purely biological unfolding of events involved in an organism changing gradually from a simple to a more complex level;
He proposed an indicator of osseous development in children
Development
Processing a photosensitive material in order to make an image visible;
The development and printing of his pictures took only two hours
Common Curiosities
What are the common risks associated with acquisitions?
Common risks include integration issues, cultural mismatches, and financial burdens.
How does development affect a company’s market position?
Effective development can lead to a stronger market position through unique offerings and innovation.
How do companies choose between development and acquisition?
Companies weigh factors such as cost, time, strategic fit, and risk when deciding between development and acquisition.
Is development more costly than acquisition?
Development can be less costly in terms of initial outlay but more expensive over time due to ongoing investment requirements.
What does acquisition mean in a corporate context?
It refers to the purchase of another company or significant assets to quickly gain resources or strategic advantages.
What is the primary goal of development in business?
The primary goal is to innovate and grow organically, enhancing or creating new products, services, or processes.
Is it common for acquisitions to fail?
Yes, many acquisitions do not achieve their intended goals due to various challenges like poor strategic fit or integration issues.
Can acquisition lead to immediate financial benefits?
Yes, if well-executed, it can lead to immediate access to new markets, technologies, or products, impacting financial performance positively.
How do development and acquisition differ in terms of employee impact?
Development may offer more opportunities for internal growth and learning, whereas acquisitions can lead to restructuring and potential job losses.
What role does culture play in acquisitions?
Cultural alignment is crucial in acquisitions to ensure smooth integration and to maintain employee morale and productivity.
What industries commonly use acquisitions as a growth strategy?
Industries like technology, pharmaceuticals, and consumer goods frequently use acquisitions to quickly scale operations or access new technologies.
How does internal development influence company culture?
It often enhances a culture of innovation and continuous improvement, fostering employee engagement and loyalty.
What are examples of strategic acquisitions?
Purchasing a competitor or a company in a related field to expand market reach or capabilities.
Can development be outsourced?
Yes, components of development can be outsourced, although core innovation activities are often kept in-house.
What are the long-term impacts of a successful acquisition?
Successful acquisitions can lead to enhanced competitive advantage, diversified offerings, and stronger financial performance.
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Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Co-written by
Maham Liaqat
