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#56 The Biography of Herb Kelleher

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Southwest Airlines Is Successful Because It's Won't Increase Its Costs by 25%

In serving its specific market niche Southwest airlines is obsessed with keeping costs low to maximize profitability instead of being concerned with increasing market share. In order to get an additional 5% of the market some companies increase their costs by 25%. That's really incongruous if profitability is your purpose. You have to know what you're competing with not who. There's just something after reading this book and then obviously hearing him speak something I was actually thinking recently about Steve Jobs.

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