Nespresso Case Study Questions On Marketing

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Nespresso Case Study Questions 1. Identify the macro- and micro-environmental factors that led Nestlé to pursue the productization of Nespresso. Which ones were most important, and why? There were many different macro and micro environmental factors that hled Nesle to pursue the commercialization of Nespresso. Nestle already had a large market share in the instant coffee business which made it easier to introduce the Nespresso system. One of the most important factors that aided in the decision was the overall growth of the “gourmet” coffee sector. 2. What role did Nestlé’s corporate culture play in the productization of Nespresso? Nestle corporate culture one where innovation is highly encouraged. The is pushed by their overall growth…show more content…
4. Based on what you know from the case study, what role did Nestlé’s a core competency play in the productization of Nespresso? At the core of Nestle’s competencies were the coffee business. They were already experts in Nescafé instant coffee. Innovation was also strongly encouraged which led to the thought of the Nespresso. 5. What is meant by “innovation” and “renovation”, respectively, in the Nestlé context? Innovation is creating new products or means of operations which have not been done before, leading an industry forward. Renovation is taking what the company already does and tweaking it to keep up with the change in consumer demand. The article states that, “Innovation is taking something into the next category or inventing a whole new category. Renovation is keeping the product in the same category and improving it” (The Nespresso Story, 2000). 6. Which role did each of Nestlé’s corporate functions play in the Nespresso productization? Nestle’s R&D division provided the innovation of the Nespresso which made the whole opportunity work. Nestle corporate provided the challenge that led to the renovation of the product. Without the corporate leadership challenge this product and the aggressive sales numbers, it would not have been successful. 7. Identify the critical success factors in the productization of Nespresso. The critical success factors in the productization of
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