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.

Market Competition, Copycat, Fast-moving Consumer Goods, Coffee, Food, Nespresso (Brand)
Nespresso, Nestlé, Consumer Goods, Food and Beverage, Consumer Goods, Coffee
Published Sources
© 2013
Available Languages
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