	Southwest Airlines began flight operations in 1971, flying three Boeing B737 aircraft between three major cities in Texas.  The company was based at Dallas’ Love Field, and the airline quickly made its presence known in the airline industry.  Through 2007, the airline company enjoyed 35 years of continuous profitability, a standard that other domestic airlines have been unable to achieve despite the current difficulties faced by the domestic airline industry.
In 2010, Southwest Airlines was the market share leader in domestic air travel in the United States.  This was primarily due to maintaining low operating costs and low fares, as well as their pursuit of exceptional customer-pleasing service.  Throughout time, they have gone from an underdog to a major competitive force in the domestic airline industry.  While most other airlines have consistently reported losses, Southwest had reported profits every year from 1980 through 2009 and a steady increase in number of passengers since 2000 all as a result of their diligent, innovative business practices.  Southwest is dedicated to achieving a low-cost/low-price/no-frills service accompanied with the highest quality of customer service to allow consumers “more bang for the buck” while travelling short-haul for leisure and/or business.  In May 2011, Consumer Reports ranked Southwest as having the best customer service in the industry.
	The internal and external environment for companies doing business in the airline industry is a critical factor in assessing a company, determining issues the company faces, and what alternatives and recommendations exist to resolve the issue.  The subsequent sections take a look at the various strategic analysis methods to determine how Southwest is positioned competitively within the industry.  The analyses demonstrate how the previously mentioned strengths of customer service and corporate culture benefit Southwest and it will also highlight the important strategic positions Southwest has achieved in the airline industry.  By combining both the internal and external strategic analysis, it allows to devise the best strategic plan of action for Southwest.
	After the strategic plan of action has been identified, it allows the consulting company to identify issues that are important to the success of the company and also to provide the reasoning behind it.  The main issue that Southwest Airlines faces in the airline industry is to continue growth while battling the new pressures and obstacles that have been introduced over time.  Change is an inevitable factor when it comes to business and Southwest must ensure that despite change, they can still continue their historic success and profitability.  Finally, once the main issue has been identified, the consulting company will recommend alternatives and recommendations that may be sought to both promote growth and avoid profit losses or negative business consequences.

	The macro-environment components that most affect the airlines industry and competitive environment are political and regulatory factors, technological factors, and general economic conditions.  Political and regulatory factors related to transportation and/or airlines impact Southwest greatly as any new policies, regulations, or laws must be complied with or their reputation could be tarnished.  Technological factors such as internet availability and usage also directly affect the airline industry.  New technologies involving the Internet are consistently being introduced that allow for increased opportunities for doing business.  Past opportunities achieved by using the internet have proven valuable, from allowing passengers to book reservations online to printing e-tickets.  Finally, general economic conditions could adversely affect the demand for travel (i.e. recession) and are clearly beyond management’s control.  
