Case Study

Innovation and renovation: The Nespresso story (Revised)

24 pages
February 2000
Reference: IMD-5-0543

The case traces the development of the Nespresso System in a 100%-owned affiliate deliberately placed outside of Nestlé’s main organisational structure. It highlights the team’s successes and challenges in creating a new, small, niche segment in the mature coffee market and its prospects for growing the business from Sfr 150 million to Sfr 1 billion within the next decade. A radical departure from most Nestlé lines of businesses targeted to the mass market, the Nespresso story offers provocative lessons about innovation in large, highly structured organisations.

Keywords
New Product Development, Direct Marketing, Coffee, Nespresso (Brand)
Settings
World/global, Switzerland
Nestlé, Nespresso, Consumer Goods, Coffee
Autumn 1999
Type
Field Research
Copyright
© 2000
Available Languages
English, Japanese, Spanish, Chinese, Portuguese
Related material
Teaching note, Video
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