Question

LUSH cosmetics is unique in the groundbreaking and visionary approach to how it invents, ethically sources and creates fresh beauty products by hand. LUSH adopts a _______strategy.

Question 41 options:

	lowest-cost
	differentiation
	prospector
	defender

Answer 1

Correct option: Differentiation.

Explanation:

In differentiation strategy, companies tend to develop a unique product or service that customers will find better than or in another way distinctive from products or services offered by competitors in market. As this strategy makes companies distinguish themselves from competitors, it allows them to charge premium for goods or services.

In above example, LUSH cosmetics offers something unique fresh beauty products which are handmade, making them different from other market players, also enabling them to charge premium for the same. Therefore, its differentiation strategy.