Caitlin Vodopia Chapter 3 Daily Assignment 1. The business model of Southwest Airlines is to minimize costs as much as possible to create customer surplus. Their goal is to achieve economies of scale through its distinct competencies with its resources and capabilities. This lowers costs and creates surplus, whereas other airlines create higher utility and have higher costs. 2. The resources Southwest has are its airplanes which are all the same, Boeing 737s, and the brand name Southwest, which carries a reputation for reliability and affordability. The capabilities of the company are the teamwork and processes that are used, such as all in-flight employees, flight attendants and pilots included, help in all aspects of the flying procedures and processes. Another capability is the way the payroll is structured for employees, as they are all involved in a profit-sharing plan and one in which 25% of shared profits are reinvested in the company, benefiting the company and its employees. The distinctive competencies Southwest has are its flexible
This is the end of the preview.
access the rest of the document.
Profit sharing, in-f l ight, distinctive competencies Southwest