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He has argued that low cost and differentiation are two basic strategies for creating value and attaining a competitive advantage in an industry.
The environment
Dance music had its origins in ‘acid house’, itself with its roots in the futuristic, electronic music of the gays clubs of Chicago and New York. Dance music was strongly associated with recreational drugs. The Ministry differentiated itself by having security professionals with no links to the local drugs gangs. This made it a safer and cleaner clubbing environment, which is a comparative advantage to other clubs. The Ministry was a rule-breaker by setting itself apart from other London nightclubs of the time with its location well away from London club land, and I believed that strategy drove down the cost in term of location...
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