Abstract
In 1996, Southwest Airlines was a successful and profitable low-cost airline company, operating in south-eastern US markets. After entering the Florida market, the company had to face certain strategic challenges. It was a big challenge to maintain the profitability while competing with all the north-eastern airlines in a highly competitive area.
In a bid to figure out the major challenges and strategic alternatives for the Southwest airlines, firstly, we studied the external environment of the company, in order to analyze their position and relation with the different players in the industry. Then, we analyzed Southwest Airlines' internal environment, such as its main resources and capabilities, in order to define the core competencies they could rely on to face their strategic challenges. Finally, we figured out what were the strategic alternatives they had, which would help them to maintain their successful position in the US market
