1.1 What type of competitive action would have a significant impact on Southwest’s forecast market growth curve?

Southwest Airlines has been consistently successful as a service operation because of two aspects of the way it operates. Southwest is often quoted as the ‘fun’ airline, with cabin crew encouraged to be creative about the way they carry out their duties, sometimes playing games with the passengers during the flight.
Southwest could deliver what became known as its ‘luv’ strategy because it was founded on sound operational principles, an emphasis on tight cost control, and careful expansion of the network. Each time Southwest acquired a new plane, a decision had to be made as to whether it would be directed to an existing route, where demand volumes were predicted to rise, or to develop the network, by adding a non-stop service between cities previously requiring passengers to take more than one flight.