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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.
Apply this pattern to your own business and create your next innovative business model!
Examples: Iconic Cases
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: IKEA offers different product lines for each category, including a basic one, letting customers with a low purchasing power buy furniture in their stores. Products in the self-service area are presented in a simple way comparable to a warehouse.
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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: In recent years Nokia introduced multiple ”no frills” phones opposing the general smartphones. These phones allow their users to text and call but don’t provide access to the internet. In addition they have a great battery live.
Learn more about Nokia →
How they do it: Aldi focuses on providing its customers with cheap groceries, offering both own brand products as well as other brands. The shopping experience is kept on a basic level as the products are mainly presented in open boxes (warehouse style) opposed to presenting them individually on a shelf.
Learn more about Aldi →
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 11 firms using this pattern.
Top Industries
Retail
29% of firms using pattern
29% of firms using pattern
Consumer Goods
14% of firms using pattern
14% of firms using pattern
Information Technology
3% 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
Target The Poor
2 pattern co-occurrences
2 pattern co-occurrences
Integrator
2 pattern co-occurrences
2 pattern co-occurrences
Cross Selling
1 pattern co-occurrences
1 pattern co-occurrences