What defines vertical expansion in a company?

Vertical expansion in a company refers to the growth strategy where a business increases its operations within its current industry, often by enhancing or expanding its existing departments and specialties. This type of expansion typically involves developing more specialized services or upgrading technology, processes, or knowledge within the company, allowing it to improve efficiency and serve its customers better.

By broadening its expertise and range of offerings, a company can better meet customer demands, adapt to market changes, and enhance its competitive edge. In this context, expanding departments and specialties signifies a deepening of internal capabilities that can lead to increased productivity and a stronger market position.

The other options describe different forms of expansion that don't fit the definition of vertical expansion. Adding additional retail locations pertains more to horizontal expansion, which focuses on increasing market reach through new locations. Increasing branch office staff is more about scaling existing operations rather than expanding vertically within the industry. Acquiring competitors represents a consolidation or horizontal strategy that does not involve deepening internal resources or capabilities within current operations.