IntroductionAir travel began in the early 1900s and scheduled flights began in the 1920s (Harris). In the early years, competition in the airline industry was non-existent. The competitive environment has changed dramatically over the past century, particularly as the industry has been subject to regulation and then deregulation. The future success of the airline industry depends on its ability to adapt to rapidly changing environmental factors. Southwest Airlines opened in 1971, after Rollin King and Herb Kelleher raised enough capital to finance their venture. Their service model was a departure from the typical policies and procedures of major airlines. The typical model had an airline that was "home-based" from a hub and flew routes to and from that location. This model added costs that Southwest wanted to avoid, leading them to implement point-to-point flights. The management team also made the decision to eliminate on-board meal options to reduce overhead costs. Customer service and the overall experience of their customers have become Southwest's valued operational vision and mission. Ultimately, the optimal use of technology for online booking has saved valuable time and improved efficiency. Although the company started strong and grew slowly, several things affected its long-term success. Some of the factors that caused Southwest to reevaluate its organic growth processes included not operating from major U.S. hubs, rising fuel costs, and difficult contract negotiations.AnalysisFive Forces AnalysisThreat of New EntrantsAccording to the Bureau of Transportation Statistics, the average price of a plane ticket cost $355.72 during the first quarter of 2011. The...... middle of paper......: text and cases (6th ed.). New York: McGraw-Hill/Irwin. Grant, R. M. (2010). Contemporary strategy analysis. (7 ed.). West Sussex, UK: Wiley. Harris, A. (nd). The history of the airline industry. The United States Today. Retrieved from http://traveltips.usatoday.com/history-airline-industry-100074.html Maynard, M. (2004). Out of the blue, the head of Southwest Airlines resigns. The New York Times. Retrieved from http://www.nytimes.com/2004/07/16/business/out-of-the-blue-southwest-airlines-chief-resigns.htmlPawlowski, A. (nd). Airlines Consider Metro Self-Boarding - Travel Kit at NBCNews.com. Latest News & Current Events - Global, US & Local News | NBC News. Retrieved from http://www.nbcnews.com/travel/travelkit/airlines-eye-subway-style-self-boarding-1C6369602Wheelen, TL and Hunger JD (2008) Strategic Management and Business Policy. Upper Saddle River, New Jersey: Pearson-Prentice Hall.