What type of company expansion involves adding branch offices?

The correct answer is horizontal expansion. This type of company expansion focuses on increasing a company's presence by adding more locations or branch offices within the same market or offering similar products or services. When a business opens new branches, it is effectively broadening its reach and market share, allowing it to serve more customers without necessarily changing its core business model.

Horizontal expansion is a strategic approach that can lead to increased brand awareness, customer loyalty, and economies of scale due to the consolidation of operations. This kind of expansion is typically beneficial for businesses looking to grow their footprint in existing markets, as it leverages established operational frameworks and resources.

Other forms of expansion, such as vertical expansion, involve diversifying the supply chain by gaining control over different production stages or distribution channels, which is a different strategy than simply establishing more branches. Diagonal expansion typically refers to entering new markets or segments by offering new products or services that are related but not identical to the current offerings. Franchise expansion allows businesses to grow by permitting others to use their brand and business model, which differs from the direct ownership and control that comes with opening branch offices.