Case Study : The Nespresso Case

2131 Words Jul 20th, 2016 9 Pages
Synopsys of Case Study:
The Nespresso Case Study outlines how the Nestlé company leveraged a home grown innovation in order to exploit a new market opportunity in the area of home-brewed instant espresso. The case begins with an introduction to Nestlé as a corporation and how the Nespresso System came to be, including the inception of a new operating company that was specifically created to focus on emerging brand. Nespresso was a departure from the regular offerings of Nestlé and so there was a lot of internal skepticism on how successful they would be and therefore how much resources this untested venture warranted. The fresh thinking of a new leader was thought to be what Nespresso needed in order to break free of any existing bias and the long standing strategies that the current Nestlé management might harbor.
In 1988, Yannick Lang was brought in to inject new life into Nespresso. With a “reputation for flair and creativity and a solid commercial and marketing track record” [1] Yang pushed to create a premium name for Nespresso. His efforts helped lead Nespresso to break even in 1995 and become the fastest growing business unit in the Nestlé organization. Now with the business stabilized and performing well, it was time to focus on future avenues for maintaining market leadership. A new leader, William Pronk, was put in place to chart a more structured course towards sustainable growth for the Nespresso brand. The goal was to reach 1 billion in sales mark within…

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