A firm considering diversification should be fully aware and understand the risks involved before proceeding. If done properly, the results could be highly profitable, otherwise, catastrophic. For example, in the stock market, the most diversified portfolios are less susceptible to major market fluctuations. In the business environment, companies diversify in search for increased revenues, a broader client base, or simply to survive market conditions. In the same manner, architecture firms should consider diversification.
Diversification can take many shapes and forms.
Sometimes it's better to buy than to build from scratch. An excellent example is the Klett Organization who has the ability and eagerness to design from nuclear simulator facilities to learning facilities to elderly healthcare facilities to simple building additions. Diversifying into non-related industries is rather more risky if the firm does not posses any related expertise. Again, if done properly, it may be highly profitable. The ideal position any diversifying company should aim for is to be diversified within its core competencies with some non-related fields but focused.