1. How would you characterize the business model of Southwest Airlines? How does this differ from the business model used at many other airlines, such as United and American Airlines?

2. Identify the resources, capabilities, and distinctive competencies of Southwest Airlines,

3. How do Southwest’s resources, capabilities, and distinctive competencies translate into superior financial performance?

4. How secure is Southwest’s competitive advantage? What are the barriers to imitation here?

Southwest Airlines has long been one of the standout performers in the U.S. airline industry. Earning a profit and earning ROIC every year, Southwest operates differently than its competitors. Southwest Airlines flies point-to-point, has a reputation for fewer delays, flies only one type of plane, reduces training costs, maintenance costs, and inventory costs, provides no meals, no movies in flight, and does not transfer baggage to other airlines. Emphasizing a positive attitude, teamwork, and good benefits, Southwest operates with a leaner but more productive, motivated, and flexible workforce.