Create a new value curve for the customer.
And this is what Southwest Airlines was able to do. And this is also referred to as a strategy
canvas. There are four basic elements to be able to create this kind of new strategy canvas,
a new value curve. One of them is reduce cost. And Southwest Airlines was able to do this
by changing the traditional hub and spoke airlines model to one that was point-to-point.
They were also able to bring in their planes and turn them around faster. Partly by eliminating
some non-essential features, such as meals, lounges, reserve sections. They were able
to bring the planes in and turn them around in twenty minutes, where typical airlines
were around forty minutes. They recognized if you multiply that by hundreds and hundreds
of times every day, that extra time in the air makes a major difference in the cost for
Southwest Airlines. The third element of doing this is to enhance high value features. Greatly
increasing the speed and frequency of flights for customers. And the last one is, if it’s
going to work, is to add unexpected benefits. And if you think about it, Southwest Airlines
has added friendly service at a whole new level that connects with customers in ways
that others airlines can’t and haven’t. And the other one is low cost, dramatically lower
costs that were completely unexpected. In fact, equivalent to, fairly close to the equivalent
of the cost of driving a car or taking a bus. So they’ve been able to create this whole
new value curve for the customer.