diversification

Vocabulary Word

Definition

Diversification is a strategy that involves spreading investments across various financial instruments or commodities to manage risk. It's like not putting all your eggs in one basket.

Examples in Different Contexts

For a tech company, 'diversification' could mean developing different types of software applications. A product manager might mention, 'Diversification of our app range has attracted a broader user base.'

Practice Scenarios

Sustainability

Scenario:

Solely relying on solar power could limit us. It may be worth exploring other renewable sources.

Response:

Adding wind and hydro power to our energy mix is smart diversification.

Business

Scenario:

We seem to be over-reliant on our main product. Exploring new product lines might widen our customer base.

Response:

You're right! Diversification of our product offerings might boost our market position.