Creating a market requires that customers not only are willing to change their behavior (for a superior benefit), but also have the means to do so. Cost-structure innovation is a
Each night, some FedEx aircraft start out empty or partially full so they can be diverted
to airports where they are needed because of overload, mechanical or other problems.
WINTER 2006 MIT SLOAN MANAGEMENT REVIEW 63 common path to customer affordability. Southwest Airlines was designed to compete on price with automobile and bus travel.The entire operating model — including the use of a single type of aircraft to minimize training and servicing costs, fast airport turnarounds so planes spend more time in the air and no seat
assignments — emphasizes cost efficiency