Analysis of the Nespresso Strategy

3717 WordsApr 24, 201315 Pages
NESPRESSO Analysis of the Nespresso strategy Content | Page | Introduction | 3 | | | Defining the industry | 3 | | | Analyzing the industry | 3 | | | Core competences of Nespresso | 4 | | | The implementation of the Nespresso business model | 5 | | | Protecting the Competitive Advantage | 5 | | | The target group of Nespresso | 5 | | | Value creation through the Nespresso marketing approach | 6 | | | Practicing the corporate social responsibility in the Nespresso strategy | 7 | | | The importance of the strong relationship with the suppliers | 7 | | | Results from the strategy | 8 | | | Future threats and conclusions | 8 | |…show more content…
This approach paid off for Nespresso. The testing market at the beginning of the implementation of their product was Switzerland and after the product reached success there, they launched it on the mass market. This gave them the chance to crystalize their business model without taking great risks and being crushed by the competitors. Protecting the Competitive Advantage Nespresso`s management understand the importance of protecting the competitive advantage they have in the face of the unique business model (Michailova, Nielsen, 2006). Through the innovation of their product Nespresso conquered the place of being the first one to implement these kinds of machines and capsules, which meant that everyone else would just be an imitator. This places them one step ahead of the competitors. That is why the company does their best to legally protect this strategy. Nespresso has over 70 patents of their products, so the machines cannot be used with any other capsules other than Nespresso`s. What is more, the products under this brand can be found and sold only in Nespresso boutiques and stores. This approach can be accepted as strategic action to position them ahead of the competition. The advantage of this is that they strengthen the idea in their marketing strategy of making their customers feel special. On the other hand this could make them less accessible because there were no shops everywhere, which is something

More about Analysis of the Nespresso Strategy

Open Document