Southwest Airlines founded in 1967 with three operating flights to Houston, Dallas, and San Antonio. It has grown to become the fourth largest United States domestic customer carrier with 1998 being Southwest Airlines twenty-sixth year of profits. Southwest airlines mission is to provide dedication to low cost, high quality of customer service that is delivered with warmth, pride, friendliness, and company spirit. Problems
Even though Southwest has maintained a lot of success, there are challenges ahead. Southwest’s big concern is expansion. This decision has several components. First Southwest must meet the current and forecasted demand, find facilities, ensure entry into the market is in a timely manner, and keep their strategy. Southwest also need to decide which cites has the greatest opportunity to profit from, determine ample routes that could be added to increase service.
The other threat comes from the competitors. Many of the airlines in America not only operate domestic flights but also international flights. Globalization generating much demand for international flights from domestic customers. For customers, it is more convenient for them to book their domestic and connecting international flights just in one stop. As a result, it is very difficult for Southwest to convince this kind of customer to take southwest’s flights. Alternatives Evaluation
Southwest Airlines, however, is not without weaknesses. No matter how successful, Southwest Airlines serves only 29 states and cannot compete against the bigger companies that serve nationally or even internationally. Competitors are aware that they cannot match Southwest Airline's prices; their market is larger and is not feasible to offer cheaper tickets at the cost of no in flight meals. Instead, competitors narrow the price difference between Southwest Airlines and themselves and stress on the quality of frills such as roomier seats. Others, through use of flight hubs,...