Innovation and Renovation, the Nespresso Story

1171 Words Apr 9th, 2013 5 Pages
INNOVATION AND RENOVATION THE NESPRESSO STORY

INTRODUCTION
The main point of this case is how firms can develop and maintain new strategies in order to have innovation and renovation, this two are fundamentals for all the companies who want to be competitive and evolving in the changing market.
Nespresso, as a line product of NESTLE, not just developed a different way to sell coffee, also created a new business model difficult to copy for the competition and a good approach to the market of R&D coffee.

CONTEXT
Nespresso System is an innovative concept because offers to the consumer an individual portions of coffee (high quality coffee). Many of these consumers are in Europe, principally in the Scandinavian nations. The
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At first this product was designed for “lifers”, those managers who stay most of the time in the office, but research prove that the house hold market was the right to go.
ISSUES AND SOLUTIONS
Nespresso had to face a series of challenges through his way to success, different types of problems show up while the company was solving another. From problems in Marketing, distribution, production, managerial and growth had to be solved if they wanted to reach the goal of SFr 1 billion.
The most representative issues presented through the case were: * The Unexplored market of R&B, which could lead to uncertain outcomes. * Solution: This situation doesn’t have an obvious solution, the conclusion that the company approach was that if the company wants to win, it must risk a little too, otherwise it will always had the same, and will not advance. * A Market domain by retailers whit price competition * Solution: Get add value through the gourmet strategy, and selling the Nespresso cups in the Nespresso club. * The challenge of creating a innovating product difficult to copy by the competition * Solution: Combining technology with Nestle experience in coffee, creating the Nespresso system and Nespresso Capsules, a brand new idea, difficult to copy whiteout infringing copy rights. * Which would be the best target population to approach? * Solution: Testing in different segments at first, but taking in consider the value of the…

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