Int: Can we take a concrete example and look at the soft drinks market? Can you explain how these three factors work?
KJ: Fine, well if you look at erm, cost as focus, or a cost-focus strategy, erm let’s take cola for example, erm we know that big supermarket chains in the UK – Safeways or Tescos or Sainsbury’s – they produce their own cola and can sell it more cheaply than Coca- Cola, for example. Erm differentiation, I mean, a good example is, I think, Tango; they’ve managed to penetrate the market and be competitive by using a very interesting and rather wacky advertising campaign for their product. Erm, and innovation, for example, Virgin we know of as er a music or airline company; they also own cinemas,
and through the cinemas, the distribution channel of their cinemas, they’ve managed now to promote their own version of cola, so they’ve…. innovation in controlling distribution means they can be competitive in the cola market, for example.