ADDITIONAL REVENUE
LOW VARIABLE COST
LOW QUALITY SERVICE EXPECTED
LOW FIXED COST
HIGH PROFIT
REINVEST
BARGAINING POWER WITH SUPPLIERS
HIGH AIRCRAFT UTILIZATION
LARGE VOLUME
Click on individual boxes to view Southwest Airlines' virtuous cycles.
ANIMATION SPEED

slow

fast

Adapted from Ramon Casadesus-Masanell and Joan Enric Ricart, “From Strategy to Business Models,” Long Range Planning 43 (April–June 2010): 195–215.