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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: Craigslist functions as a simple classified platform organized by categories. The nature of postings is simple and straightforward making listing and finding easy.
Learn more about Craigslist →

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: 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 →

How they do it: Automakers such as Ford started manufacturing no frills models to also target customer groups with low purchasing power. No frills automobiles often have only minimum convenience equipment, a less powerful engine and are fully trimmed on cost savings. Other areas of saving are for example less sound-proof material, plastic dashboards instead of rubber and less options to adjust the seat.
Learn more about Ford →

How they do it: Denner presents its products in a simple way, sometimes even in still on the pallets instead of on shelves. In addition it has only few or one options for every product choice and few brand products,
Learn more about Denner →



Apply this pattern to your own business and create your next innovative business model!