Product differentiation: Southwest Airlines attracts passengers with its unique product differentiation. For example, Southwest Airlines provides free meals and relatively short flight time on its flights, providing passengers with a better travel experience. This product difference makes Southwest Airlines stand out from the competition.
Economies of scale: Southwest Airlines has a huge fleet and extensive route network, which makes the company have economies of scale in procurement, maintenance and operation. This scale economy effect helps to reduce costs, improve profitability and further enhance the company's competitive advantage.