What is the term for increasing the number of product lines or the depth within a line?

The correct answer, expansion, refers to the strategy where a company increases its number of product lines or enhances the depth of existing lines. This approach aims to capture a larger market share by offering more options to consumers, thereby addressing different needs and preferences. When a business expands its product offerings, it can appeal to a wider audience, potentially increasing sales and brand loyalty.

By enhancing depth within a product line, a company might introduce new variations, flavors, sizes, or features of existing products. Increasing the number of product lines would involve venturing into new categories that were not previously offered. Expansion helps diversify a company's portfolio, making it more resilient to market changes and competition, and it allows businesses to tap into emerging market trends or consumer demands.

In contrast, contraction refers to reducing the number of product lines or their depth, which can happen due to factors such as underperformance or strategic redirection. Diversification involves entering completely different markets or industries with new products, while modification tends to focus on changing existing products or making improvements to better meet customer needs. Each of these strategies has distinct implications for a company’s growth and positioning in the market.