No Frills 31#
Value creation focuses on what is necessary to deliver the core value proposition of a product or service, typically as basic as possible. Cost savings are shared with the customer, usually resulting in a customer base with lower purchasing power or purchasing willingness.
Examples: Iconic Cases
How they do it: Due to the success of its low-cost business model, Ryanair ist the largest European airline today. It provides only the most basic services related to the airline fare and transportation itself. Their new fleet of airlines feature non-reclining seats, no seat-back pockets, safety cards stuck on the back of the seats, and life jackets stowed overhead rather than under the seat. This allows the airline to save on aircraft costs and enables faster cleaning and security checks during the short turnaround times.
Learn more about Ryanair →
How they do it: H&M’s store design is simple and standardized across all stores. Clothes are placed on simple racks and shelves. Staff is present, however not meant to assist the customers in their purchasing experience but rather to refill racks and shelves.
Learn more about H&M →
How they do it: McDonald’s product, supply chain and restaurant design is kept standardized and simple, allowing for efficient sourcing, food preparation and a high degree of standardization as well as cheap prices across restaurants. Compared to standard restaurants, the customer has to serve and clean up the table himself.
Learn more about McDonald's →
How they do it: Aravind’s self-sufficient model is achieved through strict cost control, appropriate utilization of resources and highly efficient processes.
Learn more about Aravind Eye Care System →
How they do it: Swatch introduced timepieces that transformed how people interpret watches. On average, priced at $50 to $100, these watches are fashion accessoires and are kept as basic as possible.
Learn more about Swatch →
Below, the top industries for the pattern "No Frills" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Top Industries
29% of firms using pattern
14% of firms using pattern
3% of firms using pattern
All Industries
Below, the pattern "No Frills" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
5 pattern co-occurrences
4 pattern co-occurrences
4 pattern co-occurrences