diversification
Spreading activities to reduce risk
a way of reducing risk by not depending on only one investment, product, market, or source of income
diversification of [investments/business/revenue]; diversification into/across [markets/assets/sectors]
- The fund relies on diversification, holding stocks, bonds, and cash in several regions.
- After sales fell in its main market, the company pursued diversification into software and services.
- For small businesses, diversification of revenue can soften the impact of a sudden drop in one product line.
- Diversification can help protect your savings.
- The firm used diversification to reduce risk.
Making something more varied
the act of making something more varied or giving it more different parts
diversification of [a group/system/field]; diversification in [an area]
- The diversification of the curriculum gave students more art, coding, and vocational options.
- Streaming has accelerated the diversification of television content.
- Dietary diversification is often recommended when children begin eating solid foods.
- The school planned diversification of its courses.
- The city has seen diversification in food, music, and art.
Evolution into diverse forms
the process by which living things evolve into many different species or forms
[species/lineage/group] diversification; diversification of [a lineage]
- The diversification of flowering plants transformed many terrestrial ecosystems.
- Island habitats often encourage rapid diversification because populations become isolated.
- Researchers compared diversification rates in birds across different climates.
- Scientists studied the diversification of fish in the lake.
- Isolation can lead to diversification over time.
- Base: diversification
- Plural: diversification, diversifications
crop diversification
1Growing different crops
growing several kinds of crops instead of only one
- Crop diversification helped farmers cope with drought and changing prices.
- The program encouraged crop diversification by providing seeds for beans and vegetables.
- Experts say crop diversification can improve both farm income and local diets.
diversification strategy
1Planned move into variety
a plan to reduce dependence on one thing by adding different products, markets, or investments
- The board approved a diversification strategy that includes healthcare and renewable energy.
- A good diversification strategy should match the company's skills and resources.
- Investors often review their diversification strategy after major market changes.
economic diversification
1Broadening an economy
making a country or region's economy depend on more than one main industry
- The government invested in technology and tourism as part of a plan for economic diversification.
- Economic diversification is a priority for regions that depend heavily on oil revenue.
- Universities can support economic diversification by training workers for new industries.
geographic diversification
1Spreading across places
not depending on only one place for sales, income, operations, or investments
- Geographic diversification protected the retailer when sales slowed in Europe.
- The fund achieved geographic diversification by investing in companies from several continents.
- Opening offices in three countries gave the firm more geographic diversification.
market diversification
1Entering different markets
finding new markets instead of selling only to the same type of customer or place
- Market diversification reduced the company's reliance on domestic buyers.
- The exporter saw Southeast Asia as the next step in its market diversification.
- Market diversification can be expensive because each new market may need different marketing and support.
portfolio diversification
1Spreading investments across assets
putting money into different kinds of investments so one loss is less damaging
- Portfolio diversification helped limit the losses when technology stocks fell.
- A basic approach to portfolio diversification is to hold both stocks and bonds.
- The adviser recommended more international funds to improve portfolio diversification.
product diversification
1Adding different products
adding different products or services to a business
- The bakery's product diversification included frozen meals and ready-made sauces.
- Product diversification helped the manufacturer survive a slowdown in its core business.
- The company used customer research to guide its product diversification.
revenue diversification
1Using multiple income sources
getting money from different sources instead of relying on one source
- The nonprofit focused on revenue diversification after a major grant ended.
- Subscriptions, advertising, and events all contributed to the media company's revenue diversification.
- Revenue diversification can make a small business more resilient.