consistent. In 2000, they were generating revenues of $5.6 billion, which was an increase of
almost $2 billion from 1999. In 2001 and 2002, their revenue was around $5.5 billion. Their net
income in 2000 was $625 million and has decreased each year to $511million in 2001 and $241
million in 2002. Their operating expenses have increased over the last three years. In 2000
they spent $4.6 million. In 2001 they spent $4.9 millions and in 2002 they spent roughly $5.1
million. The share price of Southwest has been decreasing over the past couple years.
Currently the stock is trading at $14.70. The highest it was trading at was $22.30 in December
Problems and Opportunities
Some of the problems that Southwest faces are that they will receive increased pressure from
new-entry competitors like JetBlue and AirTran Holdings. JetBlue may be on to something big to
gain competitive advantage as they are trying to provide more amenities in their planessuch
as assigned seating and televisions in the seatbacks of its thirty-seven planes. Another
problem that Southwest is going to face is the airport security hassles and higher ticket taxes,
which will affect Southwest's short-haul routes.
Southwest Airlines does have the opportunity to increase their market share now that larger
carriers like United and U.S. Airways are bankrupt. Southwest needs to compete with the
low-cost carriers to provide more value to the customer.
Use of Information Technology
Perhaps what makes Southwest Airlines so successful is its great company attitude
and its efficient management. Southwest Airlines treats their employees like their customers as
Southwest CEO, Kelleher states, "You have to treat your employees like your customers. When
you treat them right, then they will treat your outside... [continues]
Cite This Essay
(2006, 10). Southwest. StudyMode.com. Retrieved 10, 2006, from http://www.studymode.com/essays/Southwest-97496.html
"Southwest" StudyMode.com. 10 2006. 10 2006 <http://www.studymode.com/essays/Southwest-97496.html>.
"Southwest." StudyMode.com. 10, 2006. Accessed 10, 2006. http://www.studymode.com/essays/Southwest-97496.html.