Fragmentation Stage of industry evolution

Fragmentation Stage of industry evolution
Fragmentation is the first stage of the new industry. This is the stage when the new industry develops the business. At this stage, the new industry normally arises when an entrepreneur overcomes the twin problems of innovation and invention, and works out how to bring the new products or services into the market. For example, air travel services of major airlines in Europe were sold to the target market at a high price. Therefore, the majority of airlines’ customers in Europe were those people with high incomes who could afford premium prices for faster travel.
In 1985, Ryanair made a huge change in the European airline industry. Ryanair was the first airline to engage low-cost airlines in Europe. At that time, Ryanair’s services were perceived as the innovation of the European airline industry. Ryanair tickets are half the price of British Airways. Some of its sales promotions were very low. This made people think that air travel was not just made for the rich, but everybody.
Ryanair overcame the twin problems of innovation and invention in the airline industry by inventing air travel services that could serve passengers with tight budgets and those who just wanted to reach their destination without breaking their bank savings. Ryanair achieved this goal by eliminating unnecessary services offered by traditional airlines. It does not offer free meals, uses paper-free air tickets, gets rid of mile collecting scheme, utilises secondary airports, and offers frequent flights. These techniques help Ryanair save time and costs spent in airline business operation.