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

In business strategy, 'diversification' might mean entering new markets or introducing new products. A CEO might say, 'Our diversification into the health sector has significantly boosted our revenue.'

Practice Scenarios

Creative

Scenario:

Your traditional illustrations are stunning. Perhaps, expanding to digital art could offer interesting dimensions to your work.

Response:

I agree. Diversification of my art across different mediums could reach a broader audience.

Tech

Scenario:

We've focused mainly on software development. However, embracing new technologies could enrich our company's offerings.

Response:

Indeed, diversification into different tech fields could give us an edge over our competitors.