Analysis of the Nespresso Strategy

Mr. Coffee is best known for pioneering and leading the market in the automatic drip coffeemakers. The brand was established in 1968 by Vincent Marotta and Samuel Glazer and was then part of the North American Systems, Inc.

Starbucks is one of the leaders in coffee industry. Starbucks has entered into many new markets and today it has more than 16,000 outlets across the globe (Johnson, Scholes and Whittington 2011). Due to unlimited business opportunities, Starbucks Corp has set strategies to enter India as it is next major hub for development in near future. Previously Starbucks has gained wide success in China and Japan due to high consumption of coffee and tea. Since its inception, Starbucks has tapped the major markets across the world, India was left untapped. In India, Starbucks has setup alliances with TATA Global Beverages which is a unit of TATA Group of Companies. Starbucks along with TATA has started with an investment of $80 million and plans to open 50 coffee shops in a year. Currently few coffee shops has been setup by Starbucks, however in near future, it is expected that the company will achieve its target in capturing Indian market (Lamb2009). Thus, besides sourcing coffee beans from TATA, Starbucks can now explore more Asian markets (Hitt, Ireland and Hoskisson 2012).

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

Handpresso is a product designed for coffee lovers. Inspired by the quote “Simplicity is the ultimate sophistication”, Handpresso’s is developed as a simple small portable espresso machine. It is invented by Nielsen Innovation which specializes in creating new-to-the-world products. Nielsen Innovations, founded in 2000, designed and developed several innovative products such as Wi-Flow technology for a vacuum cleaner and Reelight – battery-free bicycle lights. Handpresso started as a self-financing product design project. Upon completion of the basic design, Nielson Innovation approached a couple of leaders from the espresso market to obtain a licensing agreement. The companies were happy with the portability offered by the Handpresso but they were not interested to purchase the product. Since there were no direct substitutes in the market, Nielsen Innovation decided to develop the product in-house and take it directly to market. Today, after the product development is almost complete, there are many questions that need to be answered for developing a business around this innovation. The biggest question posed is what next?

In recent months many new single-serve coffee brewers have come to market in the United States. These new competitors are offering consumers many new choices and variations of a single-serve coffee brewers. In turn, this is stepping up pressure Keurig to keep up with its competitors and the markets demand. The three competitors that pose the biggest threat to Keurig are Bunn’s MyCafé unit, Starbucks’ Verismo unit, and the Esio beverage system which is backed by Wal-Mart.

• Strong bargaining power from a supplier: MTS, being the only supplier for the K-Cup packaging line, has a control over the machine. Having no substitution plan in place, Keurig is forced to follow MTS’s request to fulfill the

In 1990, John Sylvan and Peter Dragone entered the coffee brewing industry by launching their company Keurig built upon on the question of, “why do we brew coffee by the pot when we only drink it by the cup?” Within a few years after their start-up, they were able to secure multiple patents as well as acquiring $1 million from venture capitalists to improve upon their prototype. By 1998, Keurig, which is German for excellence, was finally able to launch their first industrial strength, single-serve machine delivering a perfect cup of coffee every time. Keurig was lucky to join the coffee market at the dawn of its explosion, when consumers’ wants and needs began to shy away from

gourmet coffee quality. They have less than six months to launch the product, and very limited

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1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

One company that has been particularly successful in creating an overall company image in my option has been Starbucks. They have been able to maintain a dominant position in today’s market. Where in the morning most of our society needs a good cup of coffee in order to start their day. At one point, we looked at Starbucks as a high-end marketer. A sort of club to belong to. However, things managed to change in the recent years where a 4.00 cup of coffee was becoming a luxury items. This became known as the Coffee Wars. Starbuck had to now face competition from the fast food world. Which was McDonald’s and Dunkin’ Donuts. They started to look at this market as an opening to gain more customers. They started to offer their

Consumption of coffee in the world has been on the rise and so has it in the United Kingdom. Producers of coffee are mainly African countries (Kenya and Ethiopia) and Brazil in South America. Coffees from those countries are exported to countries like England and the rest where they are refined to meet the client’s expectation as far as taste is concerned. Here in United Kingdom there are many coffee brands and shops/stores, but in this paper only Costa and Starbuck will be discussed. The basis of the discussion is to find out consumer preference over each other and why exactly. Costa is a British multinational coffee house with approximately 1,755 outlets in the United Kingdom and 1,106 outlets in other countries. Starbuck is still a multinational coffeehouse based in the United States of America. It has 12, 356 stores world, but fifty percent of the stores are found in the united states, in United Kingdom there are only 808 stores as per early January 2015. The paper will determine the superior rival among the two coffeehouses.

In the present time, there is a lot of café that sold coffee and offered good service to the customer. One of the well new known coffee café in the market is Maxx Coffee. Maxx Coffee itself trying to relieves all of his customer’s thirst by delivering unrivaled quality coffee. Moreover, Maxx Coffee is collaborating with the coffee farmers from Aceh to Papua. Some of the coffee that they are using is Mandheling, Toraja, Flores, Kintamani, and Java. Not only stop until there, Maxx Coffee also uses the first class coffee machine to make coffee and supported with perfect brewing technique. In addition, Maxx Coffee has made its brews available in Medan, Menado, Kupang, Jogja, Palembang, Cikarang, BSD, Bogor, Lippo Village Karawaci, Buton island, Bali, and Surabaya, Maxx

Nespresso 's goal is to build a super-premium brand in the world, the perfect coffee icon. Their design characteristics is the world

The product offering of the new market entry is an espresso machine with suitable espresso capsules. In accordance with the positioning efforts, the essential customer benefit of the product is providing high quality espresso. The augmented product of this market initiative is convenient usage in multiple places. Consumers can make their own espressos wherever the espresso machine is available.