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Business Model Inspiration #4:
Getting Your Value Proposition Right

In this blog post to inspire your business model, we focus on two contrary value propositions: affordability vs. ultimate luxury. Let’s have a look at how McFit and REWE reduce their services/products to their essential features. But maybe an exclusive approach works better for you? Get inspired by Jumeirah’s or Singapore Airlines’ luxurious solutions, and decide for yourself. Innovate like a serial-entrepreneur!


What are the features that your customers really need? The strategy is about reducing products or services to their essential features in return for a lower price. Various add-ons or additional services could carry an extra charge.

We’ve got some examples for you:



The fitness center McFit has eliminated complimentary offers, such as saunas, swimming pools, nutrition counseling and fitness classes, in order to keep the price as low as possible for their customers, thus increasing profits from the higher frequency of its facilities’ usage.




REWE’s own brand Clever wants to appeal to all buyers who are not only willing to compromise on quality but are also unwilling to spend a lot of money on groceries. Clever manages to offer products at a low price by not placing importance on the brand itself and the values related to it, thereby reducing, e.g., design and marketing costs.


Ultimate Luxury

This strategy is about creating as much value as possible. The target group comprises wealthy people for whom pricing is secondary. What matters is the feeling of exclusivity and privilege.


Jumeirah Group


Jumeirah Group’s hotels and resorts are regarded as among the most luxurious and innovative in the world and have won numerous international travel and tourism awards. Ultimate luxury is at the core of the company’s value proposition. The Jumeirah Group was founded in 1997 with the aim of becoming a hospitality industry leader by establishing a world-class portfolio of luxury hotels and resorts, especially targeting wealthy people.


Singapore Airlines

singapore airlines

Singapore Airlines introduced the ‘Suites Class’, the most luxurious class of flying that is commercially available, including services such as individual suites with sliding doors, and international luxury cuisine before boarding and during the flight, thereby providing potential customers with the most luxurious and comfortable flight experience possible.

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