Diversification
/daɪˌvɜːrsɪfɪˈkeɪʃən/
Definitions
The process or result of making something more varied.
/daɪˌvɜːrsɪfɪˈkeɪʃən/
The act of making or becoming more diverse; variety.
The company implemented a strategy of diversification to reduce its reliance on a single product.
💡 Simply: Imagine you're choosing toys to play with. Instead of only picking one type of toy, you decide to pick different toys, like a ball, a car, and blocks. That's like diversification: having lots of different things instead of just one.
👶 For kids: Having a bunch of different things instead of just one.
More Examples
Portfolio diversification is essential for long-term financial stability.
Agricultural diversification can help farmers mitigate the risks of crop failure.
How It's Used
"The company's diversification into renewable energy proved successful."
"Investors use diversification to reduce risk by spreading their investments across different assets."
Synonyms & Antonyms
Synonyms
Idioms & expressions
Diversification strategy
A plan or method a business uses to expand into new markets or product lines.
"The company's diversification strategy included acquiring a new technology firm."
Diversification in investment
Spreading investments across different assets to reduce risk.
"Diversification in investment is considered a fundamental principle for building a resilient portfolio."
From Late Latin *diversificatio*, from *diversificare* 'to make diverse', from *diversus* 'various' and *facere* 'to make'.
The term 'diversification' gained prominence in business and finance in the late 20th century as companies sought to reduce risk.
Memory tip
Think of a garden with many different plants instead of just one. Diversification spreads the risk and increases the potential for success.
Word Origin
"to make diverse"