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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!

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Examples: Iconic Cases

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: 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: 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 →



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

Start the ideation