What context can I use each word in?
Learn when and how to use these words with these examples!
diversification
Example
The company's diversification strategy involved expanding into new markets and offering a wider range of products. [diversification: noun]
Example
Investors often use diversification as a way to reduce risk by investing in a variety of assets. [diversification: noun]
expansion
Example
The company's expansion plans included opening new stores in different cities. [expansion: noun]
Example
The factory underwent an expansion to increase its production capacity. [expansion: noun]
Good things to know
Which word is more common?
Expansion is more commonly used than diversification in everyday language, especially in business and finance contexts. Expansion is a more straightforward term that is easy to understand and apply in various situations. Diversification, on the other hand, is a more specialized term that is often used in investment and portfolio management.
What’s the difference in the tone of formality between diversification and expansion?
Both diversification and expansion can be used in formal and informal contexts. However, diversification may be more commonly used in formal or technical writing, while expansion is more versatile and can be used in various formality levels.
