Case Study

Reinventing Nespresso? The challenges of a market leader under attack

17 pages
September 2013
Reference: IMD-5-0790

In 2011, Nespresso achieved phenomenal success with revenues of CHF 3.5 billion. But in the meanwhile challenges started to appear. The 1,700 patents protecting Nespresso system were expiring and more and more copycat capsules compatible with Nespresso machines were emerging. Nespresso was seeing declining growth rate and market share loss. The case describes the new competition Nespresso faced, Nespresso’s first reactions, and the tough choices it had to make in order to sustain its success.

Learning Objective

Market dynamics, innovation and re-innovation, designing business models and how to defend a company’s market leader position when the product is becoming commodity.

Keywords
Market Competition, Strategy, Copycat, Portioned Coffee, Fast-moving Consumer Goods, Coffee, Food, Marketing, Nespresso (Brand)
Settings
Switzerland
Nespresso, Nestlé, Consumer Goods, Food and Beverage, Consumer Goods, Coffee
2013
Type
Published Sources
Copyright
© 2013
Available Languages
English
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