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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: 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: 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.
Learn more about IKEA →

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 →

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: 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 →



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