This paper analyzes the impact of the external growth of the company on competitiveness. The external growth of the company is based on acquisition as a type of business combination, which in the broadest sense represents the creation of a larger economic entity from two or more business entities, which continue to operate under a single management. External growth has numerous advantages compared to internal, such as: immediate increase in assets, growth in market share, and growth in income. External growth brings with it certain risks that must be anticipated in the planning phase and minimized in the later phases. The experimental part of the research was conducted on the territory of the Republic of Srpska within the industry that deals with the production of wood products such as: windows, doors, roof structures, wooden staircases and other products created by turning wood. The Delphi method was used in the research, assuming that it is a horizontal integration of two business entities. The conducted research showed that the external method of growth within the existing industry creates the potential for strengthening competitiveness. The synergy created by the combination of two business entities is the basic source for creating a competitive advantage. A prerequisite for achieving the expected effects of external growth is a planning approach as well as an adequate analysis of the complementarity of the resources of the two business entities, from which a new economic unit under a single administration is created.