... growth in passenger volume, Ryanair had accumulated losses of more than IR£20 million, and decided that a new strategy was necessary. Under the management of the newly appointed team headed by Michael O'Leary, it turned to the low-fare sector of the industry, which was under catered for at that time. Ryanair then changed its objectives and aimed to become Europe's "leading low-fares airline". According to Porter (1998), when a firm adopts a cost focus strategy, it "selects a segment or a group of segments in the industry and tailors its strategy to serving them". The case study shows that Ryanair wanted to target price conscious travellers. This strongly suggests that it adopted a cost focus strategy. As a cost focuser, Ryanair was required to change its whole organisational culture to one which is much steeped in achieving the lowest cost possible, so as to provide a competitive advantage. It attempted ...

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