Reinventing Nespresso? The challenges of a market leader under attack
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.
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.
Nespresso, Nestlé, Consumer Goods, Food and Beverage, Consumer Goods, Coffee
2013
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications

As campaign disasters at Apple, Bud Light, and Jaguar demonstrate, boards shy away from marketing oversight at their peril.
BARCELONA, JANUARY 2023. What started in 2016 as a humble entrepreneurial attempt to contribute to a more sustainable future had turned into a solid eyewear brand present in major Western markets. François van den Abeele was even more excited by t...
As with most business opportunities, branding is essential to pioneering in sustainability. Only with branding can a company resist commoditization and obtain a premium price to compensate for the upfront investment and risk in making a major chan...
The Swiss start-up Planted makes plant-based meat substitutes with remarkable environmental benefits. Its “beef” requires 97% less CO2 and 81% less water than meat from cows, while its “chicken,” also from pea protein, involves 77% less CO2 and 81...
Consumer preferences are increasingly favoring brands with a strong local identity. The reasons for this trend include environmental concerns and challenges in our fast-paced, interconnected world. Global crises -- such as the COVID-19 pandemic, c...

More than 80% of purchases are made by women. But reaching, interacting with, and converting female consumers is a challenge for most companies. You can get through the maze of marketing to women by using these four guidelines.
The case study delves into strategic transformation and leadership transitions at Unilever since 2009. Unilever has been an industry leader of business sustainability. Paul Polman was a pioneer who introduced the idea that, by addressing social an...

Leading Chinese companies are preparing to take advantage of exposure and opportunities as top sponsors and suppliers to the UEFA EURO 2024 Men’s Soccer Tournament (Euro 24) — played by European teams thousands of kilometers away from China.

Marketing campaigns for sustainable offerings often fail, leaving businesses with products that do not sell. How can companies reach customers more effectively?
Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company’s current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certai...
in I by IMD 28 January 2025
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 127-136 / Hoboken: Wiley, 2025
Research Information & Knowledge Hub for additional information on IMD publications
in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 151-165 / Hoboken: Wiley, 2025
Research Information & Knowledge Hub for additional information on IMD publications
in FamilyBusiness.org 28 October 2024
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 17 October 2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications