Case Study

Reinventing Nespresso? The challenges of a market leader under attack

17 pages
September 2013
Reference: IMD-5-0790

In 2011, Nespresso achieved phenomenal success with revenues of CHF 3.5 billion. But in the meanwhile challenges started to appear. The 1,700 patents protecting Nespresso system were expiring and more and more copycat capsules compatible with Nespresso machines were emerging. Nespresso was seeing declining growth rate and market share loss. The case describes the new competition Nespresso faced, Nespresso’s first reactions, and the tough choices it had to make in order to sustain its success.

Learning Objective

Market dynamics, innovation and re-innovation, designing business models and how to defend a company’s market leader position when the product is becoming commodity.

Keywords
Market Competition, Copycat, Fast-moving Consumer Goods, Coffee, Food, Nespresso (Brand)
Settings
Switzerland
Nespresso, Nestlé, Consumer Goods, Food and Beverage, Consumer Goods, Coffee
2013
Type
Published Sources
Copyright
© 2013
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Best-selling Case Study
Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics