diversification

A company's move into new types of business beyond those it already operates.

• Diversification helped the company grow.
• Its diversification into hotels proved successful.
• The directors rejected a costly diversification strategy.

How to use it: diversification into something (The company announced its diversification into insurance.); diversification away from something (Diversification away from oil reduced the firm's dependence on fuel prices.)

Opposites: specialization

Common phrases: business diversification, diversification into something, diversification strategy

Putting money into different kinds of investments to reduce the risk of losing it.

• Diversification can protect your savings.
• The fund offers diversification across several industries.
• Her portfolio lacked diversification because it held only technology shares.

How to use it: diversification across something (Diversification across different markets can reduce risk.)

Common phrases: portfolio diversification, diversification across markets, investment diversification

The process of adding more different kinds of things or activities.

• The farm needs greater diversification.
• Diversification of food sources can improve a community's diet.
• The plan encourages diversification beyond traditional activities.

How to use it: diversification of something (Diversification of crops helped improve the soil.)

Opposites: specialization

Common phrases: crop diversification, diversification of something, greater diversification