diversification

Language: en

🇺🇸 /daɪˌvɜrsəfəˈkeɪʃən/

📖 Definitions

  1. noun
    The act or process of diversifying; the state of being diversified; the introduction of variety or diversity into something.; In finance and investment, the strategy of spreading investments across a variety of assets, sectors, or geographic regions to reduce risk.; In business strategy, the expansion of a company's operations into new products, services, or industries different from its current offerings.; In biology and ecology, the process by which species evolve and branch into multiple distinct forms, increasing biodiversity.; The act of making something more varied or heterogeneous in composition, character, or form.

🔗 Details

Word forms

countable / uncountable Plural: diversifications

Collocations

diversification ofeconomic diversificationportfolio diversificationproduct diversificationrisk diversificationmarket diversification

Derivatives

diversifydiversediversitydiversifieddiverselydiverseness

Synonyms

variationvarietyexpansionbranching outbroadening

Antonyms

concentrationspecializationhomogenization

Commonly confused

diversity
EN: 'Diversity' is the state or quality of being diverse; 'diversification' is the process or act of making something more diverse.
diversion
EN: 'Diversion' means a distraction or rerouting; 'diversification' means broadening variety or range.

Spelling tips

EN: Remember the 'i' before '-fication': 'divers-i-fication'. Also note it derives from 'diversify' (with 'y' changing to 'i' before the suffix).

💬 Examples

  1. The company's diversification into new markets helped it survive the economic downturn.

  2. Diversification is often described as the only free lunch in investing because it reduces portfolio risk without necessarily reducing expected returns.

  3. The conglomerate's diversification into healthcare and technology made it less dependent on its original manufacturing business.

  4. The diversification of Darwin's finches on the Galápagos Islands is a classic example of adaptive radiation.

  5. The diversification of the curriculum to include more STEM subjects was welcomed by parents and educators alike.